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problems 13-22 and problem 14-20




Question;problems 13-22 and problem 14-20Chapman Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two jobs, it cannot accept both because they must be performed at the same time and Chapman does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor if either job is accepted. Furthermore, additional insurance will be required if either job is accepted. The revenue and costs associated with each job follow.Requireda. Assume that Chapman has decided to accept one of the two jobs. Identify the information relevant to selecting one job versus the other. Recommend which job to accept and support your answer with appropriate computations.b. Assume that Job A is no longer available. Chapman?s choice is to accept or reject Job B alone. Identify the information relevant to this decision. Recommend whether to accept or reject Job B. Support your answer with appropriate computations.Problem;14-20 Preparing a cash budget;Kinnion;Medical Clinic has budgeted the following cash flows.;January;February;March;Cash;Receipts;$1,00,000;$1,06,000;$1,26,000;Cash;Payments;For inventory purchases;90,000;72,000;85,000;For S&A expenses;31,000;32,000;27,000;Kinnion Medical had a cash balance of $8,000;on January 1. The company desires to;maintain a;cash;cushion of $5,000. Funds are assumed;to be borrowed, in increments of $1,000 and repaid;on;the last day of each month, the interest rate is 1 percent per month. Kinnion pays its vendor;on;the last day of the month also. The;company had a monthly $40,000 beginning balance in its;line;of credit liability account from this year?s quarterly results.;Required;The;book says that the Feb. Cash Surplus before financing activities is $7010. I;can't seem to figure out how they came to that conclusion.


Paper#42994 | Written in 18-Jul-2015

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