A company manufactures five different products. All five of…
A company manufactures five different products. All five of these products must pass through a stamping machine in its fabrication department. This machine is the constrained resource. The company would make the most profit if it produces the product that
Read DetailsIndustrial Gas Corporation supplies acetylene and other comp…
Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store’s operations for November follow:The beginning cash balance is $11,800The $20,000 balance in Accounts Receivable on November 1 is from sales on account in October.Sales are budgeted at $300,000 for November.Collections are expected to be 40% in the month of sale, and 60% in the month following the sale.Purchases of merchandise are expected to be $225,000.Payment for merchandise inventory is made 55% in the month of purchase and 45% the following month. The Accounts Payable balance is projected to be zero on November 1.Other monthly expenses to be paid in cash are $41,500.Monthly depreciation is $11,300The desired cash balance at the end of each month is $30,000The company can borrow up to $50,000 from their local bank with interest due the following month.Required:Prepare a cash budget for November. Show all the values you use to prepare the budget.
Read DetailsA company is considering a project that would require an inv…
A company is considering a project that would require an investment of $343,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows: Sales $ 227,000 Variable expenses 52,000 Contribution margin 175,000 Fixed expenses: Salaries 27,000 Rents 41,000 Depreciation 40,000 Total fixed expenses 108,000 Net operating income $ 67,000 The scrap value of the project’s assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
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