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NEW QUESTION: 1
The treasury analyst for a manufacturing entity has estimated the cash flows for the first half of next year (ignoring any short-term borrowings) as follows:
The entity has a line of credit of up to US $4 million on which it pays interest monthly at a rate of 1% of the amount used. The entity is expected to have a cash balance of US $2 million on January 1, with no amount of its line of credit used. Assuming all cash flows occur at the end of the month approximately how much will the entity pay in interest during the first half of the year?
A. 0
B. US $132,000
C. US $61,000
D. US $80,000
Answer: C
Explanation:
The sum of the beginning balance and inflows exceeds the outflows for the first 2 months. At the end of March, however, the entity must use US $2.000.000 of its line of credit US
62.000.000 beginning balance $6,000,000 inflows - $10.000.000 outflows. Thus, interest for April is US $20.000 1% x $2.000,000). The net cash outflow for April ignoring short-term borrowings) is US $1.000.000 of an additional US $1,000,000 of the line of credit. However, the US $20.000 of interest for April must also be paid, so the amount of the line of credit used in May is US $3,020,000 $2.000,000 + $1.000.000 + $20.000)_ Interest for May is therefore US $30.200 1% $2,000.000 ) The net cash inflow for May of US $2,000,000 again ignoring short-term borrowings) and the borrowing of US $30.200 to pay the interest for May, the amount of the line of credit used in June is US $1.050.200_ Interest in June is US $10.502 1% $1,050,200), and total interest is US $60,702 $20,000 $ $30,200 $10,502). Consequently, the closest answer is US $61.000.
NEW QUESTION: 2
Which of the following is not an encryption technology?
A. Blowfish
B. MD5
C. 3DES
D. KILL
Answer: D
NEW QUESTION: 3
You have an item that is a component of several bills of materials (BOMs).
You need to change the item number of the item in all the BOMs that use the item.
Which process should you use?
A. Change formula item
B. Corrections
C. Change BOM item
D. Recalculate BOM levels
Answer: C
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