What is the equation budget for each of the following1- The first transaction means that Safia (the owner)entered a capital of $ 10,000 in cash to start thebusiness. An asset (cash) column is created to recordthis transaction. The effect of the deal is that theassets and equity will increase by $ 10,0002- The second transaction states that the goods werepurchased on credit from Anees (creditor / supplier).The effect will increase the business assets (stocks)as well as liabilities (creditor) by $ 300 because thecompany owes the money to Anis.3- Salaries are work expenses. When the cashrepayment is made, the asset (cash) will be reducedand the equity (equity) also becomes lower by $ 3000due to this cash advance.4- Borrowing is like a bank loan, as the business needsmoney in its operations. The effects of this transactionare that the assets (cash) and liabilities column (bankloan) are also increased by $ 2000.5- The cash column will include when the companypurchases $ 1000 cash goods, it serves as inventory forresale to customers. The asset (cash) will increase andthe asset (the inventory) will decrease by $ 1,000 due tothis transaction.6. In this transaction, $ 300 worth of items were sold toAna on credit terms. The effects will be the depreciationof the asset value (owner's equity). 300 dollars.7- When the owner repays part of the loan that thecompany borrows from the bank, the columns of assets(cash) and liabilities (bank loan) can be deducted by$ 1,000. There is no influence on the capital (equity)column of this transaction.8- The transaction by the company will be a withdrawalthat affects the capital (equity) of the owner. TheCash & Capital column will decrease by $ 500 due towithdrawal. Recorded business transactions affectingthe assets, liabilities and capital of the company mustbe finalized.2 6:

Accounting Equation Asset = Liabilities + Equity

1- The first transaction means that Safia (the owner) entered a capital of $ 10,000 in cash to start the business. An asset (cash) column is created to record this transaction. The effect of the deal is that the assets and equity will increase by $ 10,000 2- The second transaction states that the goods were purchased on credit from Anees (creditor / supplier). The effect will increase the business assets (stocks) as well as liabilities (creditor) by $ 300 because the company owes the money to Anis. 3- Salaries are work expenses, When the cash

1- The first transaction means that Safia (the owner) entered a capital of $ 10,000 in cash to start the business. An asset (cash) column is created to record this transaction. The effect of the deal is that the assets and equity will increase by $ 10,000 2- The second transaction states that the goods were purchased on credit from Anees (creditor / supplier). The effect will increase the business assets (stocks) as well as liabilities (creditor) by $ 300 because the company owes the money to Anis. 3- Salaries are work expenses, When the cash

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

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What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?
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The financial manager of Sarap Corporation wants to determine the amount of cash atlays to be spent for the next period. He asked the help of the accountant and the lattes provided a cash budget for the next year According to the computation, the company would be incurring cash expenses of P6,612,500 per month. The financial manager has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm's opportunity cost ratio is 12% a) the optimum cash tufence is? b) The average cash balance is? c) the number of conversion made during the year? d) The total cash cost is? Please help me with these. Thank youuuu!
The financial manager of Sarap Corporation wants to determine the amount of cash outlays to be spent for the next period. He asked the help of the accountant and the latter provided a cash budget for the next year. According to the computations, the company would be incurring cash expenses of P6,612,500 per month. The financial manager has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm's opportunity cost ratio is 12%. a. The optimum cash balance is?
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