BolingerS.bak - Chart1 150,000 100,000 50,000 80% 85% 90% 0...

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Chart1 Page 1 1 2 3 4 5 6 (250,000) (200,000) (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 80% 85% 90% 95% 100% 105% 110% 115% 120% 125% 130% 135% 140% 145% 150% 155% 160%
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BOLLINGER CORPORATION Cash Budgeting This case analyzes a cash budgeting problem. This Excel model provides the solutions to questions 1-3 at the end of the case. Complete the worksheet below by entering the appropriate constants or formulas for cells containing both "XXXXX" and GREEN "check figures". BLUE font cells represent exogenous PRAMETERS which are "given" in the case and "drive" the model. BLACK font cells are FORMULAS based on references to other cells in the worksheet. When the worksheet is completed, you should be able to change the values of any parameter (blue font) cell (to any "reasonable" number) and have the worksheet formulas correctly reflect the changes. Note that TAN filled cells already contain correct formulas which you should not alter. Also, be sure to look at the "notes" attached to cells with a red square dot. The equations for "Sales (gross)," "Loans Outstanding" and "Surplus Cash" have been supplied for you - DO NOT CHANGE THEM. The spreadsheet has also been correctly formatted and the column widths are set. You must also complete the Data Table 1 at the bottom of the worksheet. This table shows what happens to Loans Outstanding minus Surplus Cash when the original sales projection differs by some percentage (FACTOR) of the figures shown in the parameters section. (Be sure all formula references to sales are to the FIRST ROW [Sales (gross)] in the monthly cash budget so that the data table works correctly.) Be sure that you understand the financial implications of this table. PROJECTIONS GIVEN IN THE CASE: Monthly Sales: Variable Costs: Fixed Costs: ($000's) 1987 (% of sales) ($000's) Monthly November $50,000 Materials 20% December 80,000 (% pd. before sale) salaries $16,000 2 mo prior 50% Lease 6,000 1988 1 mo prior 50% Deprec. 8,000 January $100,000 Labor 40% Misc. exp. 5,000 February 120,000 (% pd. before sale) March 140,000 2 mo prior 50% Quarterly April 190,000 1 mo prior 50% Taxes $15,000 May 130,000 June 100,000 Collections: Semi-ann. July 50,000 Discount per. (days) 10 Interest $10,000 August 40,000 Discount amt. 1% % paying 20% June Cash Account: "NET" per. (days) 30 New equip. $100,000 ($000's) % Paying 70% Opt. cash $60,000 Late per. (days) 60 Beg. cash 60,000 % Paying 10% QUESTIONS 1 and 2: Monthly Cash Budget. Table 6-1
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This homework help was uploaded on 04/16/2008 for the course FIN 5421 taught by Professor Ritchey during the Spring '07 term at Texas Tech.

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BolingerS.bak - Chart1 150,000 100,000 50,000 80% 85% 90% 0...

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