The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted
1 answer:
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Answer / Explanation:
To properly answer this question, we will first define some key terms which includes:
Surplus: This can be refereed to as an amount exceeding a particular requirement after it has been met.
Demand: This can be refereed to as the quantity of goods and serves a consumer or an individual is willing and pay for per time.
Now that we understand the basic concept above, we now refer back to the narrative of the question to try and answer t hem.
(a) With Provider A, the cost of an extra minute is $0. With Provider B, the cost of an extra minute is $1.
(b) With Provider A, my friend will purchase 150 minutes [= 150 – (50)(0)]. With Provider B, my friend would purchase 100 minutes [= 150 – (50)(1)].
(c) With Provider A, she would pay $120. With Provider B, he would pay $100.
(d) The figure below shows the friend’s demand. With Provider A, she buys 150 minutes and her consumer surplus is equal to (1/2)(3)(150) – 120 = 105. With Provider B, her consumer surplus is equal to (1/2)(2)(100) = 100
(e) I would recommend Provider A because she receives greater consumer surplus when buying from that provider.
Answer:
a. Operating Cash flow = 56,025
b. Cash flow to credit = 18,400
c. Cash flow to Stockholder = 5,800
d. There is no addition to Net Working capital if Fixed assets increased by $46,000.
Explanation:
a.
Operating Cash flow = Sales - Total cash Expenses
Operating Cash flow = Sales - ( Costs + Other Expenses + Interest Expense + Taxes )
Operating Cash flow = 398,000 - ( 298,000 + 7,900 + 14,200 + 21,875 )
Operating Cash flow = 398,000 - 341,975
Operating Cash flow = 56,025
b.
Cash flow to credit = Interest paid - Ending Long term debt + Beginning Long term debt
Cash flow to credit = 14,200 + 4200 + 0
Cash flow to credit = 18,400
c.
Cash flow to Stockholder = Dividend payment - New Stock Issued
Cash flow to Stockholder = 11,500 - 5,700
Cash flow to Stockholder = 5,800
d.
There is no addition to Net Working capital if Fixed assets increased by $46,000. As Fixed asset are not the part on Working capital. Working capital only account for the current assets and current liabilities.
Net Working Capital = Current Assets - Current Liabilities
Not: The requirement were missing in the question so the answer is made according to original question which is attached as a picture with this answer.
