The firm takes a 2% cash discount and makes payment for the remaining 30% of all purchases in the month of purchase. Cash payment on this trade credit is required in the month following purchase on 70% of all purchases. What are total cash receipts in the month of April?Ī firm makes all purchases on credit. Of the credit sales, 20% are collected in the month of sale, 60% in the month following the sale, and 20% in the second month following the sale. The maximum annual percentage increase in sales that can be achieved based on target operating, debt, and dividend-payout ratios.īeing negatively related to the firm's target return on equity and positively related to its retention rate.Ī firm receives cash for 30% of its sales with the remaining 70% being credit sales. The percentage change in retained earnings assuming a steady state model where the retention rate is held constant.īeing positively related to the firm's target return on equity and negatively related to its target retention rate. The sustainable growth rate (SGR) can be expressed as: $10,001 increase in accounts payable a "use" of funds would be:Īccording to the accounting profession, which of the following would be considered a cash-flow item from an "operating" activity?Ĭash inflow to the firm from selling new common equity shares.
If the following are balance sheet changes: $ 7,000 decrease in cash $ 9,850 increase in inventories a "source" of funds would be:Īccording to the accounting profession, which of the following would be considered a cash-flow item from an "investing" activity?Ĭash outflow to the government for taxes.Ĭash outflow to shareholders as dividends.Ĭash outflow to purchase bonds issued by another company. If the following are balance sheet changes: $ 5,005 decrease in accounts receivable
Which of the following is not a cash outflow for the firm? $ 8,950 decrease in net fixed assets a "use" of funds would be:Īn examination of the sources and uses of funds is part of:Ĭalculations for preparing the balance sheet. If the following are the balance sheet changes: $ 5,005 decrease in accounts receivable Based on the marked increases in funds invested, other states should consider helping local governments and public authorities with cash management.According to the accounting profession, which of the following would be considered a cash-flow item from a "financing" activity?Ī cash outflow to the government for taxes.Ī cash outflow to repurchase the firm's own common stock.Ī cash outflow to purchase bonds issued by another company. Principal findings include: cities over 10,000 population and counties in general are investing a high percentage of their funds small-sized cities and public authorities tend to avoid the higher yielding, but more complex to purchase, instruments: and most governments and authorities experienced a considerable increase in the percentage of funds invested after review by the LGC.
This article discusses what was reported to the LGC and changes in invested funds occuring after LGC's evaluation. The LGC established state's local five evaluation criteria and notified the governments and authorities of deviations from the five investment norms. In 1985 North Carolina's Local Government Commission (LGC) began a program to evaluate the percentage portfolios of the funds invested and the diversity of the investment governments and public authorities.