34 Estimating the total amount of operating credit that will be owed at the end of each time period during the year is useful for. Multiple Choice scheduling crop and livestock marketing. projecting the farm's net worth at the end of the year. estimating the farm's net income for the year. comparing to the maximum balance on an operating line that a lender will approve.
Added by Clinton C.
Close
Step 1
Step 1: The question asks what is the use of estimating the total amount of operating credit that will be owed at the end of each time period during the year. Show more…
Show all steps
Your feedback will help us improve your experience
Adi S and 67 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
why do farmers need to perform estimation and calculation in farming
Adi S.
Quantitative Analysis for Management: 8-15 Margaret Black's family owns five parcels of farmland broken into a southeast sector, north sector, northwest sector, west sector, and southwest sector. Margaret is involved primarily in growing wheat, alfalfa, and barley crops and is currently preparing her production plan for next year. The Pennsylvania Water Authority has just announced its yearly water allotment, with the Black farm receiving 7,400 acre-feet. Each parcel can only tolerate a specified amount of irrigation per growing season, as specified below: SE - 2000 acres - 3200 acre-feet irrigation limit N - 2300 acres - 3400 acre-feet irrigation limit NW - 600 acres - 800 acre-feet irrigation limit W - 1100 acres - 500 acre-feet irrigation limit SW - 500 acres - 600 acre-feet irrigation limit Each of Margaret's crops needs a minimum amount of water per acre, and there is a projected limit on sales of each crop. Crop data follows: Wheat - 110,000 bushels (Maximum sales) - 1.6 acre-feet water needed per acre Alfalfa - 1800 tons (Maximum sales) - 2.9 acre-feet water needed per acre Barley - 2200 tons (Maximum sales) - 3.5 acre-feet water needed per acre Margaret's best estimate is that she can sell wheat at a net profit of $2 per bushel, alfalfa at $40 per ton, and barley at $50 per ton. One acre of land yields an average of 1.5 tons of alfalfa and 2.2 tons of barley. The wheat yield is approximately 50 bushels per acre. Use Excel Solver (a) Formulate Margaret's production plan. (b) What should the crop plan be, and what profit will it yield? (c) The Water Authority informs Margaret that for a special fee of $6000 this year, her farm will qualify for an additional allotment of 600 acre-feet of water. How should she respond?
Akash M.
The accountant for Nelly's Dress Shop prepared the fourth quarter 2017 cash budget that appears on the following spreadsheet. Nelly's has a policy to maintain a minimum cash balance of $14,000 before the interest payment at the end of each month. The shop borrows and repays funds on the first day of the month. The interest rate is 2 percent per month. Required: a. Construct a spreadsheet to model the cash budget as shown in the following screen capture. Be sure to use formulas where possible so that any changes to the estimates will be automatically reflected in the spreadsheet. Spreadsheet Tips: (1) Rows 11, 15, 17, 18, 20 to 22, and 24 should be based on formulas. (2) Cells F6, H6, F9, and H9 should also be based on formulas. For example, cell F6 should be =D24.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD