Answer:
The company must borrow $144000
Explanation:
The required ending cash balance is the balance that the company should have at the end of the period. The decision to borrow will be taken by comparing the actual ending balance with the required ending balance. If the actual ending balance is less than the required ending balance, only then the company needs to borrow to reach the desired level of ending balance.
The actual ending balance can be calculated as,
Actual Ending balance = Opening Balance + Cash receipts - Cash disbursements
Actual Ending balance = 126000 + 870000 - 1020000
Actual Ending balance = - $24000
Difference = -24000 - 120000 = - $144000
As the ending cash balance is negative ( - $24000) which means that there is a shortage of cash and the company does not have enough cash to meet the disbursements for the period and maintain the required ending cash balance. The negative sign in difference indicates shortage and the need for borrowing. The company should borrow for the amount of difference. Thus, the company should borrow $144000
Answer:
Endogenous factors (variables that can be controlled when performing a model test):
The Wright brothers used the wind tunnel to improve the design of their aircraft's wings.
Exogenous factors (variables that cannot be controlled when performing a model test):
- wind and rain
- air pressure
No one can control the climate.
Answer:
1) The fixed overhead production-volume variance is $14400 favourable.
2) The fixed overhead spending variance is $9000 unfavourable.
Explanation:
1)
Fixed overhead production volume variance
= amount applied * amount budgeted
= 144000/30000
= 4.80 per unit
= 4.80*33000 - 144000
= $14400 favourable
Therefore, The fixed overhead production-volume variance is $14400 favourable.
2)
fixed overhead spending variance
= actual overhead - budgeted overhead
= 153000 - 144000
= $9000 unfavourable
Therefore, The fixed overhead spending variance is $9000 unfavourable.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Total fixed costs= 300,000
Total costs= $450,000
Units= 120,000
A) Unitary variable cost= 150,000/120,000= $1.25
B) Units= 75,000
<u>The fixed costs remain constant no matter how many units are made (between relevant ranges).</u>
Total fixed costs= $300,000
C) UNits= 160,000
Total variable costs= 1.25*160,000= $200,000
D) Units= 180,000
Total fixed costs= 300,000
Total variable costs= 1.25*180,0000= 225,000
Total costs= $525,000
Answer:
6.25%
Explanation:
The formula for calculating interest rate is as follows
I= P x R x T
Where
I= interest, P= principal amount, T is time
in this case: I= $60.94, P=$975, T=1 year
Therefore:
$60.94 = $975 x( r/100) x 1
$60.94 =975(r/100) multiply both side by 100 to get rid of the fraction.
6094=975r
r = 6094/ 975
r = 6.2502
interest rate = 6.25%