Sharp decline in cash is puzzling

Reference no: EM131012191

Mary Walker, president of Rusco Company, considers $27,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $22,000 in cash was available at the end of 2015. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker.

Reference no: EM131012191

Questions Cloud

External factor of economic conditions can be overcome : If the organization has the supplies it needs then functions of the employees are not hinders however, if supplies are scarce, then staff will not be able to perform duties to the best of their ability and clients will be unsatisfied hence the org..

Error between duration prediction and actual market values : MLK Bank has an asset portfolio that consists of $200 million of 15-year, 12.5-percent-coupon, $1,000 bonds with annual coupon payments that sell at par. a-1. What will be the new prices if market yields change immediately by ± 2.00 percent? What is ..

What was your personal response to the song : What was your PERSONAL response to the song? How does what you saw, heard and felt connect to the materials you've read in class

What annual interest rate-save any additional funds : Your parents will retire in 20 years. They currently have $230,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer..

Sharp decline in cash is puzzling : As can be seen from the following statements, only $22,000 in cash was available at the end of 2015. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to ..

Determine the gross water supply reservoir volume : Determine the gross water supply reservoir volume for the following information: City population: 200,000 Water consumption rate: 568 Lpcd Catchment area: 103 Km^2 Rainfall rate: 110cm/yr Annual soil evaporation: 50cm Minimum net reservoir volume:..

Using the method of comparables : Use all of the above data to estimate the value of Macy’s shares. One problem above is the negative EPS (i.e. loss) by JC Penney. What should you do if you have negative earnings for a comparable firm? using the “Method of Comparables”, what would yo..

Statement about flexibility-cost and riskiness of short term : Statements about the flexibility, cost and riskiness of short-term versus long term debt depend to a large extent on the type of short-term financing that is actually used. Three major types of short-term financing--accruals, accounts payable and ban..

What if project is judged to have lower-than-average risk : You have been asked to evaluate the proposed acquisition of a new clinical laboratory tesgt system. The system's price is $50,000, and it will cost another $10,000 for transportation and installation. What if the project is judged to have lower-than-..

User Account

All Pages