Hayley Company has the following forecasted cash receipts and cash payments for the first four months of the year.

January February March April
Budgeted cash collections 75,000 60,000 75,000 146,000
Total budgeted cash payments 97,000 107,000 82,000 90,000

On January 1, Hayley Company had a cash balance of $60,000. Hayley has a policy of maintaining a cash balance of at least $10,000 at the end of each month. Which one of the following represents the sequence of cash borrowings and repayments in February, March, and April? Note: Ignore any interest on loans, and assume that Hayley repays loans as quickly as possible.

A. February, $19,000 borrowing; March, $7,000 borrowing; April, $26,000 repayment
B. February, $47,000 borrowing; March, $21,000 repayment; April, $26,000 repayment
C. February, $9,000 borrowing; March, $7,000 borrowing; April, $16,000 repayment
D. February, $47,000 borrowing; March, $7,000 borrowing; April, $26,000 repayment
E. February, $37,000 borrowing; March, $11,000 repayment; April, $26,000 repayment

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be:

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.