EBK PRINCIPLES OF MANAGERIAL FINANCE
15th Edition
ISBN: 8220106777916
Author: SMART
Publisher: YUZU
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Chapter 1, Problem 1.3P
Cash flows It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account, and her bank loans money at 6% per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were as follows:
| Item | ||
| Clothes | $1,000 | |
| Interest received | $450 | |
| Dining out | –500 | |
| Groceries | –800 | |
| Salary | 4,500 | |
| Auto payment | –355 | |
| Utilities | –280 | |
| Mortgage | –1,200 | |
| Gas | –222 |
- a. Determine Jane’s total cash inflows and cash outflows.
- b. Determine the net cash flow for the month of August.
- c. If there is a shortage, what are a few options open to Jane?
- d. If there is a surplus, what would be a prudent strategy for her to follow?
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A. Cash flows it is typical for Jane to plan, monitor, and assess her financial position using cash flowsover a given period, typically a month. Jane has a savings account, and her bank loans money at 6%per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were asfollows
Item Cash inflows Cash outflowsClothes 1,000Interest received 450Dining out 500Groceries 800Salary 4,500Auto payment 355Utilities 280Mortgage 1,200Gas 222
a. Determines Jane’ total cash inflows and outflows.b. Determine the net cash flow for the month of August.c. If there is a shortage, what are the few options open to Jane?d. If there is a surplus, what would be a prudent strategy for her to follow?
A. Cash flows it is typical for Jane to plan, monitor, and assess her financial position using cash flowsover a given period, typically a month. Jane has a savings account, and her bank loans money at 6%per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were asfollows: 10 points
Item Cash inflows Cash outflowsClothes ₱ 1,000Interest received ₱ 450Dining out 500Groceries 800Salary 4,500Auto payment 355Utilities 280Mortgage 1,200Gas 222
a. Determines Jane’ total cash inflows and outflows.b. Determine the net cash flow for the month of August.c. If there is a shortage, what are the few options open to Jane?d. If there is a surplus, what would be a prudent strategy for her to follow?
Please answer the D
It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account and her bank loans money at 6%per year while it offers short-term investment rates of 5%. Jane's cash flows during August were as follows:
a. Determine Jane's total cash inflows and cash outflows.
b. Determine the net cash flow for the month of August.
c. If there is a shortage, what are a few options open to Jane?
d. If there is a surplus, what would be a prudent strategy for her to follow?
a. Jane's total cash inflows are
$4840.
(Round to the nearest dollar.)
Jane's total cash outflows are
$4700.
(Round to the nearest dollar.)
b. Jane's net cash flow for the month of August is
$140
(Round to the nearest dollar. Remember that a positive number indicates a surplus and a negative number indicates a shortage.)
c. If there is a shortage, what are a few options…
Chapter 1 Solutions
EBK PRINCIPLES OF MANAGERIAL FINANCE
Ch. 1.1 - What is the goal of the firm and, therefore, of...Ch. 1.1 - For what three main reasons is profit maximization...Ch. 1.1 - What is risk? Why must financial managers consider...Ch. 1.1 - Is maximizing shareholder wealth inconsistent with...Ch. 1.2 - What are the main types of decisions that...Ch. 1.2 - Prob. 1.6RQCh. 1.2 - Prob. 1.7RQCh. 1.2 - What are the major differences between accounting...Ch. 1.2 - Prob. 1.9RQCh. 1.3 - Prob. 1.10RQ
Ch. 1.3 - Prob. 1.11RQCh. 1.3 - What does it mean to say that corporations face a...Ch. 1.3 - Prob. 1.13RQCh. 1.3 - Prob. 1.14RQCh. 1.3 - Prob. 1.15RQCh. 1 - Learning Goal 4 ST1-1 Emphasis on Cash Flows...Ch. 1 - Prob. 1.1WUECh. 1 - Prob. 1.2WUECh. 1 - Learning Goal 4 E1-3 The end-of-year parties at...Ch. 1 - You have been made treasurer for a day at AIMCO,...Ch. 1 - Recently, some branches of Donut Shop, Inc., have...Ch. 1 - Ross Company, a manufacturer of pharmaceuticals,...Ch. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Cash flows It is typical for Jane to plan,...Ch. 1 - Marginal cost-benefit analysis and the goal of the...Ch. 1 - Identifying agency problems, costs, and...Ch. 1 - Corporate taxes Tantor Supply, Inc., is a small...Ch. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Interest versus dividend expense Michaels...Ch. 1 - Hemingway Corporation is considering expanding its...Ch. 1 - Prob. 1.12PCh. 1 - Prob. 1SE
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