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This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? However, you will realize that a specific minimum amount of cash is essential for any business. Take an easy case: if you are a retailer, will you send away a customer who does not have accurate change? Though, you can entertain him only if you keel change. It is your investment in cash; likewise, you will have to pay your employees and suppliers at a particular time. So as to do that you needs cash. Thus investment in cash is that amount that is required to be maintained on hand to meet daily requirements of cash. This amount is determined after taking in account the regularity and amounts of cash of inflows, the frequency and amount of outflows, as also the uncertainties related to these. Clearly, as your business grows the requirement for cash will also grow.
Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share
7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha
Atkinson's Reliable Tools makes two products that use similar raw materials: #587Q and #253X. Estimated production needs for a unit of each product follows. #587Q #253X Steel (in p
Is building rental connected to kilowatt hours
General Motors has to raise new capital in one of the following three ways. Using the income tax rate of 32%, find the after-tax cost of new capital in each case. (A) Sell commo
A firm of printers is contemplating joining the uniform costing system operated by its Trade Association but the Managing Director is dubious about the benefits of becoming
Budgeted direct labour cost 75000 hours @ $16 per hour Budgeted manufacturing overhead 80 000 hours @ $17.50 per hour Actual direct labour cost $997 500 Budgeted manufa
It may be dispute that in a total quality environment, variance analysis from a standard costing system is redundant.í Talk about the validity of this statement.
1. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital i
Accounting Treatment of Spoilage Costs 1) Normal Spoilage Costs: These costs are assigned to the good output utilizing two approaches as: (i) Omission Approach: Under th
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