Schedule of Cash Payments Tadpole Learning Systems Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $120,000 April 140,000 May 160,000 Depreciation, insurance, and property taxes represent $10,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November. Seventy percent of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. Enter all amounts as positive numbers.

Solution :

                            Tadpole Learning System Inc.

     Schedule of cash payments for selling and administration expenses

                           For the three months ending May 31

Particulars                      March                     April                       May

March Expenses

Paid in March              $ 77,000

Paid in April                                               $ 33,000

                              ($110000 x 70%)     ($110000 x 30%)

April Expenses

Paid in April                                            $ 91,000                  

Paid in May                                                                                 $ 39,000                                                      

                                                             ($130000 x 70%)     ($130000 x 30%)

May expenses

Paid in May                                                                                $ 1,05,000

                                                                                              ($150000 x 70%)

Total cash payments  $ 77,000              $ 1,24,000            $ 1,44,000    

Given the expenses including depreciation, insurance and property tax of 10,000 to be deducted as it is not paid in the months of March, April, May. Hence it is excluded :

1                                   2                       3                                               2-3

Revised expense   Expense   Depreciation, insurance    Expense excluding

                                                 property tax                      depreciation,  

                                                                                            insurance and

                                                                                            property tax

March                     $ 1,20,000         $ 10,000                       $ 1,10,000

April                        $ 1,40,000         $ 10,000                       $ 1,30,000

May                        $ 1,60,000         $ 10,000                       $ 1,50,000

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.