Use the following information to determine the ending cash balance to be reporte
ID: 2485918 • Letter: U
Question
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
$111,800.
$86,800.
$77,600.
$54,600.
$20,400
The following present value factors are provided for use in this problem.
Xavier Co. wants to purchase a machine for $37,300 with a four year life and a $1,000 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $12,300 in each of the four years. What is the machine's net present value (round to the nearest whole dollar)?
$4,174.
$3,439.
$41,474.
$(4,174).
$(3,439)
A company's flexible budget for 15,000 units of production reflects sales of $330,000; variable costs of $90,000; and fixed costs of $97,500. Calculate the expected level of operating income if the company produces and sells 18,000 units. A. $156,000. B. $171,000. C. $105,000. D. $190,500. E. $142,500.
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
a. Beginning cash balance on June 1, $94,200. b. Cash receipts from sales, $414,000. c. Budgeted cash disbursements for purchases, $269,000. d. Budgeted cash disbursements for salaries, $95,200. e. Other budgeted cash expenses, $57,200. f. Cash repayment of bank loan, $32,200. g. Budgeted depreciation expense, $34,200.Explanation / Answer
Net Present value of MAchine
= CAsh flow xPresent value of $1 at 8% for year 1 = 0.9259
= 12300x0.9259 = 11388.57
12300xPresent value of $1 at 8% for year 2 = 0.8573
=12300 x0.8573 = 10544.79
12300xPresent value of $1 at 8% for year 3= 0.7938
= 12300x0.7938 =$9763.74
12300xPresent value of $1 at 8% for year 4= 0.7350
=12300x0.7350 = 9040.50
=11388.57+10544.79+9763.74+9040.50 = 40737.60
NEt Present Value Of machine = Net Present value of cash flows - initial investment
= 40737.60 - 37300 = $3437.6 or $3438
18000x22 =$396000
Less VAriable Cost $108000
less Fixed COst = $97500
OPERATING iNCOME = 396000-108000-97500 = $190500
Beginning CAsh BAlance 94200 Add CAsh Receipts (sales) 414000 less Disbursements Disbursement for purchases 269000 Disbursement for salaries 95200 other cash expense 57200 CAsh Surplus 86800 Less Financing Repayment of BAnk loan 32200 Budgeted Ending CAsh Balance 54600