Answer:
a. 41.6 million
b. 42.28 million
Explanation:
The computations are shown below:
a. For the forecast for July month:
= Number of checks received in June × smoothing constant + (1 - smoothing constant) × forecast in June
= 40 million × 0.2 + (1 - 0.2) × 42 million
= 8 million + 33.6 million
= 41.6 million
b. For the forecast for August month:
= Number of checks received in July × smoothing constant + (1 - smoothing constant) × forecast in July
= 45 million × 0.2 + (1 - 0.2) × 41.6 million
= 9 million + 33.28 million
= 42.28 million
c. In this, the exponential method is used. But in the given situation we use linear forecasting method
Answer:Net Income = $68,730 ; Operating cash flow=$181,730
Explanation:
Gross sales $865,000
Less:
Cost of good sold $455,000
selling Expenses $210,000
Total $200,000
Interest on notes $200,00 X 4% = 8,000
Depreciation $105,000
EBT $87,000
( $865,000- $455,000- $210,000- $8,000 - $105,000 )
less tax at 21% $18,270
(87,000 x 0.21)
Net Income $68,730
(87,000 - 18,270)
b) Operating cash flow = Net income + depreciation + interest
$68,730 + $105,000 + $8,000 =$181,730
Answer:
a. 4.89%
b. 5.23%
Explanation:
We use the rate formula which is shown in the attached spreadsheet
Given that,
Present value = $2,000 × 108.96% = $2,179.20
Future value or Face value = $2,000
PMT = $2,000 × 5.7% ÷ 2 = $57
NPER = 16 years × 2 = 32 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
a. The yield to maturity of the bond is 4.89%
b. The current yield would be
= 57 × 2 ÷ $2,179.20
= 5.23%
Answer:
Gene's Gloves was given the right to dump 5,000 gallons of harmful chemicals. It will need to spend $10,000 ($1 per gallon x 10,000 gallons) to substitute harmful chemicals for harmless chemicals in order to keep working.
Wally's Wallet was also given the right to dump 5,000 gallons of harmful chemicals. It will need $60,000 ($3 per gallon x 20,000 gallons) to treat those chemicals and turn them harmless in order to keep working.
If Gene can sell its right to dump 5,000 gallons to Wally, for a price higher than $5,000 but lower than $15,000, both companies would win:
Gene would spend $15,000 in harmless chemicals but it would have between $5,001 and $14,999 in revenue from the selling of "pollution rights".
Wally will spend $45,000 in treating harmful chemicals but it will have to pay Gene between $5,001 and $14,999 for buying their "pollution rights".
Answer:
Option A is Correct one.
<u>The budgeted required production for August is 11,600 units.</u>
Explanation:
Beginning inventory=(20%*11600)=2320
Add:production(balance)(11600+2660-2320)=11940 units(B).
Less:ending inventory(20%*13300)=(2660)
Sales=11600 units
