Clean Enterprise Limited2021JanuaryS'0005,00012,00018,0005,000202020212021MarchS'00010,00026,00010,0007,0004001,000100DecemberFebruaryS'0006,00010,000000.SCash sales12,00030,00040,0005,0005001,000Credit salesCredit purchasesSalaries40,0005,0003001,000Utilities300DepreciationProperty taxesInsurance1,0003,000AdvertisingStatutory deductionsOther expenses5001003001,5001,8001,5001002,100200300100Additional information:1. Collection from credit customers are normally 60% in the month of sale,30% in the month following sale and the balance of 10% in the secondmonth following sale.2. The credit sale for November 2020 was $14,000,000.3. Including in the November 2020 credit sales is a credit sale to Hard LuckLimited. The company (Hard Luck Limited) purchased $100,000 goods onNovember 1, 2020. A notice in the newspaper on November 6, 2020indicated that a loan creditor of the company had placed the company intoreceivership.4. Credit purchases are paid for in the month following purchase.5. The company is expected to invest $12,000,000 on fixed deposit for sixmonths on December 1, 2020. The company will receive a 5% rate ofretum per annm The interest income will be received on a monthly basis.6. A bonus of 2 % of total sales for December 2020 will be paid to staffmembers in January 2021.7. Salaries, utilities, property taxes, insurance, advertising and other expetisesare paid in the month incurred. 8. Financial institutions charge no penalty for paying a loan before the duedate. Financial institutions will charge a penalty of $5,000 if a companyliquidates its investment early.9. Statutory deductions are paid for in the month following the payrolldeductions. Corporation tax for 2021 is estimated at $1,200,000 and isnormally paid on a quarterly basis. The first payment is normally made onMarch 31.10. The expected closing cash and bank balance on December 31, 2020 isexpected to be $8,000,000.11. The company wants to purchase computer equipment costing $8,000,000in March 2021 and wants to obtain an overdraft to purchase the computerequipment. The computer equipment is expected to last for 4 years. Thecompany will also need to purchase software in March 2021 at a cost ofS1,000,000. No funds have been identified to purchase the software.12. The company's Statement of Financial Position reveals a loan amountingto $4,000,000 at an interest rate of 10% per annum. The interest is paidquarterly on March 31, June 30, September 30, and December 31. Theloan is to be repaid on February 28, 2021. The company pays the intereston a monthly basis.Required:(1)Assume that you are employed by the company. What recommendationswould you make to the management team of the company?Prepare the revised cash budget for the quarter ending March 31, 2021incorporating any relevant recommendation(s) you made in (1) above.(2)

Answered: S'000 12,000 S'000 5,000 12,000 18,000…

S'000 12,000 S'000 5,000 12,000 18,000 5,000 300 1,000 S'000 6,000 10,000 40,000 5,000 S'000 10,000 26,000 10,000 7,000 30,000 40,000 5,000 500 300 400 1,000 1,000 1,000 100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Part 1: Net Present Value (NPV) First, we need to calculate the annual cash flow. The net income is given, and since depreciation is a non-cash expense, we add it back to net income to find the cash flow: Annual Cash Flow = Net Income + Depreciation Annual Cash Flow = $200,000+ $200,000 Annual Cash Flow = $400,000 The project lasts for 8 years with an initial investment of $2,000,000. The NPV formula is: CE NPV - Initial Investment = t=1 where CF, is the annual cash flow, is the discount rate, and 12 is the number of years. NPV= 400,000 - 2,000,000 t=1 (1+0.10) Calculating each term: Year 1: Year 2: Year 3: 400,000 (1+0.10)1 400,000 (1+0.10)² 400,000 (1+0.10) 400,000 1.10 400,000 363, 636.36 330, 578.51 1.21 400,000 = 300, 525.98 1.331
Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs and time (months) to a given stage of completion for a project to upgrade a bridge to current standards. The project was originally estimated to take 25 months to complete. Also presented are the actual results through the first 11 months of the project. Percentage Complete 0% 4% 8% 12% 16% 20% 24% 28% 32% 36% 40% 44% 48% 52% 56% 60% 64% 68% 72% 76% 80% 84% 88% 92% 96% 100% Cost ($000) Budget 0 213 471 775 1,125 1,520 1,961 2,447 2,979 3,557 4,180 4,849 5,563 6,323 7,129 7,980 8,877 9,819 10,807 11,841 12,920 14,045 15,215 16,431 17,693 19,000 Actual 0 112 266 464 706 990 1,317 1,688 2,102 2,559 3,059 3,063 4,189 4,819 Months to Reach Budget Actual 0 5 7 8 9 10 11 12 13 14 14 15 16 17 18 18 19 20 20 21 22 22 23 24 24 25 0 1 1 2 3 4 4 5 6 7 8 9 10 11
Please help with 4a and 4b
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Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal services are billed to the client (there are no cash sales). Kailua expects that, on average, 20% will be paid in the month of billing, 50% will be paid in the month following billing, and 25% will be paid in the second month following billing. For the next 5 months, the following sales billings are expected: $84,000 100,800 77,000 86,800 91,000 May June July August September Required: Prepare a schedule showing the cash expected in payments on accounts receivable in August and in September. If an amount box does not require an entry, leave it blank or enter "0". Be sure to enter percentages as whole numbers. Kailua and Company Schedule
Home office BranchSales P 365,000 P174,000Shipment to branch 90,000Purchases from outsiders 220,000 35,000Advertising expense 13,700 2,500Salaries and Commission 35,000 9,500Rent Expense 10,000 2,000Miscellaneous expense 3,300 500Shipment from home Office 112,500Inventories, January 1:Home Office 85,000Branch:From outsiders 9,500From home office at 2018 billed price30,000Inventories, December 31:Home Office 65,000BranchFrom outsider 6,500From Home office at 2018 billed price30,0001. The branch inventory at cost on December 31, 2021 is:a. P30,500 c. P70,000b. 31,500 d. 36,5002. The combined net income of the Home Office and the Branch on December 31, 2021 is:a. P111,000 c. P250,500b. 63,000 d. 174,000
ADAK STEEL budget info: 01 02 04 $2,500,000 $2,000,000 $2,200,000 $2,800,000 $500,000 $500,000 $600,000 $700,000 $800,000 $800,000 $900,000 $1,000,000 $400,000 $400,000 $400,000 $400,000 Sales on account Purchases of material on account Payroll Miscellaneous Cash collections of sales on account: 70% current Quarter; 20% following Q 4% - never Sales in previous year: 3rd Q-$1,800,000 4th Q-$2,400,000 Material Purchases: Paid ½ in current Q; ½ in next Q Purchases in 4th Q of previous year: $600,000 All other items (payroll, miscellaneous) are paid in current month. Non-operating cash outlays: Dividends: Bond interest: Bond Principal: 6% second following Q $90,000 every Q. $60,000 on June 30 and $40,000 on December 31. $1,000,000 on June 30. $120,000 Annual interest rate: 8% Beginning Cash Balance, Jan. 1: Minimum Balance: $100,000 REQUIRED: Prepare a Cash Budget Repay loan only when you have enough cash to pay entire loan. Pay interest when you pay principal. Borrow at beginning of Q,…
5c
Not handwritten....
40"l1贪A N 65% D 3:19 +968 9925 1453 8 minutes ago These are selected account balances on December 31, 2011. Land (location of the corporation's office building) $100,000; Land (held for future use) 150,000; Corporate Office Building 600,000; Inventory 200,000; Equipment 450,000; Office Furniture 100,000; Accumulated Depreciation 300,000. What is the total amount of non- current assets that will appear on the statement of financial position? Select one: a. $1,100,000 b. $1,300,000 C. $1,600,000 d. $950,000 口口

How much could you save for retirement if you chose to invest the money you spend on Starbucks coffee in one year? Assume you buy one venti cup of caffe latte for $4.15 each weekday for 50 weeks and can invest the total amount in a mutual fund earning 5% compounded annually for 30 years. (Use the Table 12.1 provided.) Note: Round your answer to two decimal places.
Cinnamon Buns Company (CBC) started 2024 with $54,000 of inventory on hand. During 2024, $284,000 in inventory was purchased on account with credit terms of 2/10, 1/30 - All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $11,000. Inventory with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $320,000. CBC uses a perpetual inventory system. Assume instead that (a) freight costs were paid by the vendor, (b) no discounts were taken, and (c) the inventory on hand at the beginning of 2024 was determined by a physical count that failed to realize that $12,000 of inventory was being held on consignment for Frosting R Us Incorporated. What is cost of goods available for sale, assuming CBC uses the gross method to record purchase discounts? Multiple Choice $324,680 $344,200 $321.200 A