It is a false statement that assets are claims (by creditors) against the company.
What is an assets?Basically, an assets refers to any item of property that is owned by a person or company, regarded as having value and available to meet debts, commitments, legacies etc.
In financial accounting, it means the resource with an economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. They are reported on a company's balance sheet and created to increase a firm's value or benefit the firm's operations.
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According to the video, what are some tasks that Construction Managers perform? Select four options.
installing plumbing and electrical fixtures
purchasing land to build on
deciding on construction methods
hiring contractors
selling building materials to laborers
making schedules
getting permits and licenses
creating architectural plans
Tasks. To fulfill deadlines, arrange or manage the activities of a construction project. Prepare and send cost tracking reports, progress reports, or budget estimates. Thus option C, D, F, G is correct.
What are Construction Managers to perform?A representative of the owner or developer, such as administrative personnel, employees, or clients, shall interpret and explain the plans and the conditions of the contract.
Construction project planning, coordination, budgeting, and completion are all under the control of construction managers.
A construction manager performs the following duties at a high level: The entire building project is planned out with deadlines and checkpoints. Employs and oversees personnel and contractors.
Therefore, the planning or management of a construction project's activities to meet deadlines.
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state any five occupations in public service sector? Explain any one of them.
Answer:
Explanation:
Public service simply refers to the services that are provided by the government. The examples of occupations in the public service sector include:
1. Firefighter
2. Law enforcement officer
3. Custom inspector
4. Military
5. Public health nurse
A law enforcement officer is a person that enforces law. They also help in protecting lives and properties.
A _____ is a set of unique features of a company and its products that are perceived by the people or companies the organization wishes to serve as significant and superior to those of the competition.
A competitive advantage is a set of unique features of a company and its products that are perceived by the people or companies the organization wishes to serve as significant and superior to those of the competition.
What exactly is a competitive advantage?If a company have something that gives it an edge over its competitors that eventually helps it attract more customers and grows its market share, then it is a competitive advantage to the company.
There are three primary forms of a competitive advantage, namely (1) cost advantage, (2) offer advantage, and (3) niche advantage.
Cost advantage means providing a service or producing a product at a lower cost than competitors.Offer advantage means a company's product or service stands out from the competitors by meeting a unique customer need.Niche advantage means designing a product or service that attracts a specific audience.Find out more about competitive advantage here: https://brainly.com/question/26514848
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Recreation resorts are the only ones to offer sports and other recreation activities.
Recreation resorts are not only the ones to offer the sports and other recreation activities as there are other resorts as well to provide with such facility.
What are recreation resorts?Recreation resorts refers to those resorts which facilitates us with receration activities such as running, dancing, swiming, mediatation, walking, short term sports etc.
There are other resorts such as hills stations, beach resort, luxury resort, economy resort etc.
Thus similar kind of activities are provided in other resorts as well with there unique features.
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samantha had never traveled to new york city before, but she had been on a recent business trip to houston. when she learned that the hotel room she wanted in new york city cost $300 per night, she was shocked because she thought the hotel rooms would be priced similarly to those in houston. this is an example of the
The given situation is an example of anchoring and adjustment bias
Anchoring and adjustment is a cognitive bias that refers to the typical human propensity to overly depend on the initial piece of information provided when making judgments. It is when people utilize an early piece of information to create subsequent judgments during decision-making. After the anchor is fixed, the remaining data is rearranged to fit the position of the anchor, creating a bias.
For instance, the initial price that a used computer vendor offers sets the bar for all subsequent talks, making prices that are lower than the initial price seem more acceptable even when they are still greater than the computer's actual value. Similarly, Samantha was a new traveller and was under the incorrect assumption that the prices of hotel rooms in New York and Houston would be the same. She should have researched more, rather than relying on first-hand information. Thus, this is an anchoring and adjustment bias
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According to Uniform Commercial Code (UCC) Section 3-312, a certified check or a cashier's check is fully recoverable if the check is _____.
Answer:
lost or stolen
Explanation:
The Uniform Commercial Code is one of the primary sources of the contract law in the United States of America together with the Common law. The Uniform Commercial Law is commonly known as the UCC and it is one of the "uniform law" or the "modern laws" in the United States.
Under the section 3-312 of the UCC if a check is a certified check or a cashier check and if the check is lost or stolen, then the claimant of the check can fully get the refund of the amount by submitting a declaration to the bank and have to wait for 30-90 days to get a replacement check or the refund of the money. The claimant may have to present a indemnity bond to the bank.
Base on Uniform Commercial Code (UCC) Section 3-312, There is every tendency that certified check or a cashier's check can be recovered in case of loss or theft.
Uniform Commercial Code (UCC) Section 3-312 can be regarded as code that overseas the recovery of any teller's check or certified check Incase of theft or loss.This means that so far the check is a certified one no panic incase of loss.Therefore, loss or stolen is correct.
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Why should I prepare myself to be career-ready in multiple career clusters ? (3-4 sentences )
Answer:
Knowing the projected growth trends of your desired future career can help you map out a career trajectory
Find out who the big players are in your desired industry.
Interacting and networking with others can keep you in the loop when it comes to your future career.
Explanation:
How much did your Parent 1 (father/mother/stepparent) earn from working (wages, salaries, tips, etc.) in 2020
The year 2020 had a big impact on the economy due to the global pandemic, also having an impact on the annual income of families, so if your father or mother, for example, receive fixed salaries and tips, they probably felt the impacts of the economic recession.
How the pandemic affected the economyThe rates of infection by the virus and mortality generated a scenario of insecurity that led to a public decision to stop consumerism in order to restrict resources and be able to adopt an effective strategy in a period of great uncertainty.
Therefore, with the measures adopted by the government, such as social isolation, many companies stopped producing, closed for a while and were unable to survive without generating profits.
The impact of the pandemic then led to an economic downturn in several countries and caused thousands of people to lose their jobs or businesses.
To change this scenario, it is necessary to implement public policies with strategies to create jobs, reduce bureaucracy, invest and encourage industry.
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PLEASE HELP I WILL GIVE BRAINLIEST!!!!!!!!!!!!!!!!!!
Darcy is in charge of selling some old equipment for her company as they clean out their warehouse. A customer offers to pay $6,000 for a set of old printing presses. To ensure she receives the funds, how should Darcy NOT accept payment for these items?
through an electronic funds transfer (EFT)
with cash
with a certified check
with a standard check
What is a placebo?
A. A placebo refers to a specific member of a sample from which data are collected.
B. A placebo refers to any problem in the design or conduct of a statistical study that tends to favor certain results.
C. A placebo refers to a situation in which a patient improves simply because they believe they are receiving a useful treatment.
D. A placebo lacks the active ingredients of a treatment being tested in a study, but is identical in appearance to the treatment.
A placebo is: D. A placebo lacks the active ingredients of a treatment being tested in a study, but is identical in appearance to the treatment.
What is placebo?A placebo are substance that are not active or treatment that is used as a control in clinical research trials. It is often in the form of a pill, injection, or other medical intervention that looks and may even taste the same as the experimental treatment, but has no therapeutic effect.
The use of placebos in clinical trials helps researchers determine whether the experimental treatment is actually effective, or if the observed effects are simply due to the placebo effect (the patient's belief that they are receiving a beneficial treatment).
Therefore the correct option is D.
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Moneygrabber mutual fund gains 25% in year one and loses 20% in year two. What is its
actual annual return?
O-5%
0%
5%
10%
The actual annual return of Money grabber mutual fund is 0%. The appropriate response is option B.
What is mutual fund?A corporation that pools money from several people and invests it in securities like stocks, bonds, and short-term debt is known as a mutual fund. The portfolio of a mutual fund refers to all of its holdings. Mutual fund shares are purchased by investors. Each share reflects a shareholder's ownership interest in the fund and the revenue it produces.
The mutual fund gains 25% in year one and loses 20% in year two, thus the average annual rate of return is 2.5%. The actual annual rate is 0%.
The appropriate response is option B.
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What is the NPV of the project if the discount rate is 7%?
Answer with two decimals.
Project A
CF0: - 14,370
CF1: 3,530
CF2: 4,499
CF3: 9,942
CF4: 8,806
CF5: 2,396
The NPV of Project A, with a discount rate of 7%, is 9,625.87.
To calculate the Net Present Value (NPV) of the project, we need to discount each cash flow to its present value and then sum them up. The discount rate is given as 7%. Using the formula for present value:
PV = CF / \((1 + r)^n\)
Where:
PV = Present Value
CF = Cash Flow
r = Discount rate
n = Time period
Let's calculate the NPV of Project A:
PV0 = -14,370 / \((1 + 0.07)^0\) = -14,370
PV1 = 3,530 / \((1 + 0.07)^1\) = 3,293.46
PV2 = 4,499 / \((1 + 0.07)^2\) = 3,807.12
PV3 = 9,942 / \((1 + 0.07)^3\) = 8,267.45
PV4 = 8,806 / \((1 + 0.07)^4\) = 6,909.06
PV5 = 2,396 / \((1 + 0.07)^5\) = 1,718.78
Now we sum up all the present values:
NPV = PV0 + PV1 + PV2 + PV3 + PV4 + PV5
= -14,370 + 3,293.46 + 3,807.12 + 8,267.45 + 6,909.06 + 1,718.78
= 9,625.87
Therefore, the Net Present Value (NPV) of Project A, with a discount rate of 7%, is 9,625.87.
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Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $0.75 coming 3 years from today. The dividend should grow rapidly-at a rate of 49% per year-during Years 4 and 5; but after Year 5, growth should be a constant 5% per year. If the required return on Computech is 18%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.
Answer:
The value of the stock today is $7.64.
Explanation:
This can be calculated as follows:
Since required return is 18% (or 0.18), we have:
Present value (PV) of year 3 dividend = $0.75 / (1 + 0.18)^3 = $0.456473154509468
Year 4 dividend = Year 3 dividend * (1 + growth rate in year 4) = $0.75 * (1 + 0.49) = $1.1175
PV of year 4 dividend = $1.1175 / (1 + 0.18)^4 = $0.576394067982294
Year 5 dividend = Year 4 dividend * (1 + growth rate in year 5) = $1.1175 * (1 + 0.49) = $1.665075
PV of year 5 dividend = $1.665075 / (1 + 0.18)^5 = $0.727819628214931
Year 6 dividend = Year 5 dividend * (1 + growth rate in year 6) = $1.665075 * (1 + 0.05) = $1.74832875
Using the Gordon growth model (GGM) formula, we can calculate stock price year 5 as follows:
Stock price at year 5 = Year 6 dividend / (rate of return - Constant annual growth rate after year 5) = $1.74832875 / (0.18 - 0.05) = $13.4486826923077
PV of stock price at year 5 = $13.4486826923077 / (1 + 0.18)^5 = $5.87854315096675
Value of the stock today = PV of year 3 dividend + PV of year 4 dividend + PV of year 5 dividend + PV of stock price at year 5 = $0.456473154509468 + $0.576394067982294 + $0.727819628214931 + $5.87854315096675 = $7.64
Therefore, the value of the stock today is $7.64.
Anya says that she can’t possibly worry about the exam she has coming up when there are starving children all over the world. This is an example of a __________ fallacy.
This is an example of a Red Herring fallacy. A Red Herring fallacy occurs when someone tries to divert attention from the main issue by introducing an irrelevant topic. In this case, Anya is trying to divert attention from the fact that she has an exam coming up by bringing up the issue of starving children all over the world.
While the issue of starving children is important, it is not relevant to the topic at hand, which is the exam that Anya has coming up. By introducing this irrelevant topic, Anya is attempting to distract from the main issue and avoid addressing it.
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At the present time, Omni Consumer Products Company (OCP) has 10-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a current market price of $1,092.79 per bond, carry a coupon rate of 11%, and distribute annual coupon payments. The company incurs a federal-plus-state tax rate of 25%. If OCP wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)
The closest answer is 5.66%, but this is significantly different than the correct answer, which is 6.19%.
Noncallable bondsA non-callable bond is a bond that is only paid out at maturity. The issuer of a non-callable bond can't call the bond before its date of maturity.
Support is below.
The pre-tax cost of debt is computed as follows:
Pre-tax Cost = Annual Coupon / Market Value
Pre-tax Cost = ($1,000 * .10) / $1,050.76 = .0952 or 9.52%
The after-tax cost of debt is computed as follows:
After-tax Cost = Pre-tax Cost * (1-Tax Rate)
After-tax Cost = .0952 * (1-.35) = .0619 or 6.19%
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Valley Designs issued a 90-day, 6% note for $60,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 21 b. Determine the maturity value of the note.
Answer:
a. 21 July
b. $30,900
Explanation:
a. The computation of due date of the note is shown below:-
= 8 + 31 + 30 + 21
= 21 July
b. The computation of maturity value of the note is shown below:-
Maturity value of the note = Principal + Interest
= $60,000 + ($60,000 × 6% × 90 ÷ 360)
= $30,000 + $450
= $30,900
Therefore we have applied the above formula.
The chess club needs to raise money for tournament uniforms. some members want to sell energy drinks at a football game to raise funds, but others want to organize a car wash in the school parking lot. based on the concept of scarcity, which thought should drive members' decision-making process to determine how to fundraise? where will unsold energy drinks be stored? is there enough consumer demand for a car wash? will the concession stand be open during the big game? are there enough volunteers to work a car wash?
The scarcity of individuals is the main issue here. The availability of adequate car wash volunteers will be decided in the decision-making process.
What is the decision-making process?The decision-making process involves a process of decision-making by examining all the factors that contribute to the end.
At a chess club for deciding where to drink energy or car wash, the biggest problem will be determined by the availability of enough car wash volunteers.
Return of a non-marketable strong drink is possible. The club is visited by members, so finding a car wash will not be a problem. The agreement that will add to the revenue will be analyzed.
Thus, the availability of the number of volunteers for car washing was the major concern that will be raised in the decision-making process. Thus, option D is correct.
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Answer:"d" Are there enough volunteers to work a car wash?
Explanation:Took the test
Activity-based costing has been found to be useful in each of the following service industries except A) banks. B) hospitals. C) telephone companies. D) ABC has been useful in any of these industries.
Activity-based costing (ABC) has been found to be useful in service industries, such as hospitals and telephone companies, except banks. The correct option is A.
Activity-based costing (ABC) is an activity-based method of determining an item's total cost by identifying and measuring each activity's contributing expenses that result in its production.The purpose of activity-based costing is to provide better information about costs and the actions that can be taken to reduce them.
Activity-based costing helps to eliminate the arbitrary allocations to goods and services that were the result of the conventional costing system. ABC assigns costs based on the activities that generate costs and is used in situations where the complexity of the business operation necessitates a more precise system for allocating indirect costs.
By focusing on activities that generate costs, ABC helps companies to identify areas where costs can be cut, as well as identify and enhance areas where money is being spent effectively.
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Select the false statement about a budget
A budget balances net income and expenses.
A budget provides input to financial planning.
A budget is an emergency fund.
A budget should be reviewed regularly.
Under the budget-execution authority granted in a 1985 constitutional amendment, in which ways can appropriations be changed between legislative sessions?.
The legislature is crucial in shaping the annual budget and providing budgetary oversight. When fiscal policies and medium-term budgetary goals are debated in parliament and annual budget laws are passed.
What is Role of the Legislature in Budget Processes ?Constitutions define the legislative role and its relationship with the executive. Constitutions and budget system laws elaborate on the legislature's budgetary roles and powers.The legislature's active participation in the budget process is critical for promoting good governance and fiscal transparency. Budget strategies and policies are more widely "owned" when fiscal policies and medium-term budgetary objectives are debated in parliament. However, increased legislative participation risks deterioration of fiscal discipline.The primary functions of Parliament are to review and debate the government's draught ex ante budget and to authorise spending to carry out the annual budget plan. Parliament also examines budget implementation and, in some countries, formally approves and discharges the government following annual budget implementation.To learn more about legislative sessions refer :
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FCCLA's mission is: to promote personal growth and _______ ________ through family and consumer sciences education.
Answer:
FCCLA's mission is:to promote personal growth and leadership development through family and consumer sciences education.
A transaction will only happen if and only if the price is between:
The buyer’s value and the buyer’s outside option
The buyer’s value and the seller’s outside option
The buyer’s value and the seller’s cost of production
The buyer’s outside option and the seller’s outside option
The buyer’s outside option and the seller’s cost of production
A transaction will only happen if and only if the price is between the buyer's value and the seller's outside option.
Let's break down the options to understand why this is the correct answer:
- Option 1: The buyer's value and the buyer's outside option. This option doesn't make sense because the buyer's outside option is not directly related to the transaction. The buyer's outside option refers to an alternative choice the buyer has if the transaction doesn't occur, and it is not directly involved in determining the price of the transaction.
- Option 2: The buyer's value and the seller's outside option. This is the correct answer. The buyer's value represents the maximum amount the buyer is willing to pay for the item or service. The seller's outside option refers to an alternative choice the seller has if the transaction doesn't occur. For a transaction to happen, the price needs to fall between the buyer's value and the seller's outside option. This ensures that both the buyer and seller find the transaction mutually beneficial.
- Option 3: The buyer's value and the seller's cost of production. This option doesn't capture the buyer's perspective accurately. The buyer's value is the maximum price the buyer is willing to pay, whereas the seller's cost of production is the cost incurred by the seller to produce the item or service. The transaction price is determined by the buyer's value, not the seller's cost of production.
- Option 4: The buyer's outside option and the seller's outside option. The buyer's outside option is not directly involved in determining the price of the transaction. It refers to an alternative choice the buyer has if the transaction doesn't occur. The seller's outside option also refers to an alternative choice the seller has if the transaction doesn't occur. However, the price of the transaction is determined by the buyer's value and the seller's outside option, not the outside options of both parties.
- Option 5: The buyer's outside option and the seller's cost of production. The buyer's outside option is not directly involved in determining the price of the transaction. The seller's cost of production refers to the cost incurred by the seller to produce the item or service. The transaction price is determined by the buyer's value, not the seller's cost of production.
Therefore, the correct answer is: The transaction will only happen if and only if the price is between the buyer's value and the seller's outside option.
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What are the advantages of payroll taxes?
You can ensure that you will receive the benefits you are entitled to from the government by making sure that you pay the appropriate payroll taxes. The following are government benefits: Joblessness Protection Advantages. Benefits from Disability Insurance.
State and federal taxes that your employer is required to withhold from your paycheck are known as payroll taxes. These taxes are sent to the government by your employer to pay for benefits that you may be eligible for if you become disabled, unemployed, or retired.
You are responsible for contributing some payroll taxes, such as your entire state and federal income taxes and your FICA taxes, which cover your portion of Social Security and Medicare taxes. Additionally, your employer bears its fair share of payroll taxes. It should pay the other portion of your Government backed retirement and Federal health care charges, as well as everything of any state and administrative joblessness charge.
Typically, your paycheck is used to pay your payroll taxes. However, if you are paid in cash, your employer may not have made these deductions by mistake.
In addition, there is no assurance that your employer will send the payroll taxes that were deducted from your wages to the government, regardless of whether you are paid by check or cash, even if your employer correctly makes the deductions when you are paid.
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Sandra acquired a passive activity three years ago. Until last year, the activity was profitable, and her at-risk amount was $300,000. Last year, the activity produced a loss of $100,000, and in the current year, the loss is $50,000. Assuming Sandra has received no passive activity income in the current or prior years, her suspended passive activity losses from the activity are: a. $90,000 from last year and $50,000 from the current year. b. $100,000 from last year and $50,000 from the current year. c. $0 from last year and $0 from the current year. d. $50,000 from the current year.
Answer:
c. $0 from last year and $0 from the current year.
Explanation:
$300,000 - $100,000 = $200,000 new at risk basis at the end of last year
at risk basis at the end of current year = at risk basis at the end of last year - current year's loss = $200,000 - $50,000 = $150,000
since at risk basis is still $150,000 (not negative), there is no suspended passive activity loss
_____ or short saying of wisdom or truth were used to teach lessons to the people
Answer:
ygyvuyvuhuvhuh
Explanation:
anybody have good jokes??
Answer:
dark humor... why did the kid in the wheelchair get bullied?
Explanation:
because he couldn't stand up for himself
Answer:
A string walks into a bar, the bartender says "Hey! We don't serve your kind here!" so the string walks out and wravels himself up. He turns himself inside out all in knots, gets all dirty, and ruffles up his ends. He walks back into the bar and the bartender says "Hey! Aren't you that piece of string I just threw out a second ago?" and the string answered "Im Afraid Knot!"
Which of the taxes listed on her Form W-2 do you think Susan might be able to "get
back?"
The Federal and the state income tax are the axes listed on her Form W-2 she can get back
The taxes thst she can get backUpon the submission of their income tax return at the conclusion of a fiscal year, employees have the opportunity to receive a reimbursement if they contributed an excess amount towards their taxes throughout this financial period.
Such a circumstance may emerge when workers undergo excessive diminutions from their paychecks or meet particular criteria that grant them eligibility for tax credits or deductions.
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the price elasticity of demand depends on
Answer:
...price levels, the type of product or service, income levels, and the availability of any potential substitutes.
The account of ABC Corp. prepared a statement of affairs. Total assets which there are no claims or liens are expected to produce P2,100,000. Unsecured claims of all classes totaled to P3,150,000.
The following are claims deemed outstanding:
Accrued salaries. P45,000
Unrecorded note for P30,000, on which P1,800 of interest has accrued
A note for P90,000 secured by P120,000 receivable, estimated to be 60% collectible
A P45,000 note on which P900 interest has accrued with a property having book value of P30,000 and a market value of P54,000 is pledged to guarantee payment of principal and interest.
Unpaid income taxes of P105,000.
What is the amount realized by partially secured creditors?
Group of answer choices
P72,000
P83,700
P90,000
P83,160
So, the amount realized by partially secured creditors is -$6,000.
The amount realized by partially secured creditors can be calculated as follows:
Secured claims that are expected to be collected in full:
P90,000 secured by P120,000 receivable (60% collectible) = P90,000 x 60% = P54,000
P45,000 note secured by P30,000 property = P45,000
Unsecured claims that are expected to be collected in full:
Accrued salaries = P45,000
Unrecorded note for P30,000 (100% collectible) = P30,000
Unsecured claims that are partially collectible:
P105,000 unpaid income taxes = P105,000
The amount realized by partially secured creditors can be calculated as follows:
P54,000 secured claims + P45,000 unsecured claims = P99,000
P99,000 - P105,000 = -$6,000
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The following information pertains to LMN Traders for three months ended 31 May 2022.
Actual
Budgeted
March
R
April
R
May
R
Sales (20% for cash and 80% on credit)
360 000
380 000
400 000
Purchases (10% for cash 90% on credit)
240 000
280 000
320 000
Salaries and wages paid
40 000
60 000
60 000
Cash expenses
24 000
28 000
32 000
Depreciation
2 000
2 000
2 000
Additional Information:
1) It is expected that debtors will settle their accounts as follows:
20 % in the month of sale
70 %in the month after the month of sale, and
5% in the second month after the month of sale
2) The remaining 5% is usually written off as bad debts.
3) Trade creditors are paid in the month after the purchases at a discount of 5%.
5
4) 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred.
5) Expenses are paid as they arise.
6) The favourable bank balance on 1 April 2018 was R 21 000.
Required:
Prepare the Cash Budget of LMN Traders for April and May 2022.
Show all workings
The cash budget for LMN Traders indicates the expected cash inflows and outflows for the months of April and May 2022. The budget takes into account the sales, purchases, salaries and wages, cash expenses, and other relevant information provided. The purpose of the cash budget is to forecast the company's cash position and ensure that it has enough funds to meet its obligations.
To prepare the cash budget, we need to calculate the cash inflows and outflows for each month.
Cash Inflows:
1. Sales: The sales for April and May are R380,000 and R400,000, respectively. Since 80% of sales are on credit, we need to calculate the expected cash collections based on the given information. For April sales, 20% will be received as cash (R380,000 * 20% = R76,000). The remaining 70% will be received in May (R380,000 * 70% = R266,000). For May sales, 20% will be received as cash (R400,000 * 20% = R80,000), and the remaining 70% will be received in June (R400,000 * 70% = R280,000).
2. Trade Debtors: As per the given information, 5% of the credit sales are expected to be written off as bad debts. Therefore, the cash inflow from debtors will be reduced by this amount. For April, the cash collected from debtors will be R266,000 (R380,000 * 70% - R380,000 * 5% = R266,000). For May, the cash collected from debtors will be R280,000 (R400,000 * 70% - R400,000 * 5% = R280,000).
Cash Outflows:
1. Purchases: The purchases for April and May are R280,000 and R320,000, respectively. As per the given information, 10% of the purchases are paid in cash, while the remaining 90% is on credit. Therefore, for April, the cash paid for purchases will be R28,000 (R280,000 * 10% = R28,000), and for May, it will be R32,000 (R320,000 * 10% = R32,000).
2. Trade Creditors: The trade creditors are paid in the month after the purchases with a discount of 5%. Thus, for April, the cash paid to trade creditors will be R252,000 (R280,000 * 90% - R280,000 * 5% = R252,000), and for May, it will be R304,000 (R320,000 * 90% - R320,000 * 5% = R304,000).
3. Salaries and Wages: The salaries and wages paid for each month are R60,000. Since 50% of the salaries and wages are weekly wages, we need to consider that 10% of the wages will be paid in the month following the month they were incurred. Therefore, for April, the cash paid for salaries and wages will be R54,000 (R60,000 * 90% = R54,000), and for May, it will also be R54,000 (R60,000 * 90% = R54,000).
4. Cash Expenses: The cash expenses for each month are R28,000 and R32,000, respectively.
Based on these calculations, we can prepare the cash budget for LMN Traders for April and May 2022. The budget will include the opening bank balance (R21,000) and the cash inflows and outflows for each month, allowing us to determine the closing bank balance.
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