Autumn 2005- TBS 907- TUTORIAL 7- Cash Budgeting

# Autumn 2005- TBS 907- TUTORIAL 7- Cash Budgeting - TBS 907-...

This preview shows pages 1–2. Sign up to view the full content.

TBS 907- AUTUMN 2005 TUTORIAL 7 – CASH BUDGETING Question 1 Spancy Audio Company has a 60-day average collection period and wishes to maintain a \$5 minimum cash balance. Based on this and the information below, complete the following cash budget. What conclusions do you draw? SPANCY AUDIO COMPANY CASH BUDGET ( IN MILLIONS) July Oct Jan Apr to to to to Sep Dec Mar June Q1 Q2 Q3 Q4 Beginning Receivables \$120.00 Sales \$90.00 \$120.00 \$150.00 \$120.00 Cash Collections Ending Receivables Total Cash Collections Total Cash Disbursements \$80.00 \$160.00 \$180.00 \$160.00 Net Cash Inflow Beginning Cash Balance \$5.00 Net Cash Ending Cash Balance Minimum Cash Balance Cumulative Surplus( deficit) Question 2 The Crimestopper Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales ( in millions) \$111.00 \$210.00 \$240.00 \$120.00 Accounts receivables at the beginning of the year are \$90m. Crimestopper has a 60- day collection period. Calculate cash collections in each of the four quarters by completing the following: Q1 Q2 Q3

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 07/10/2009 for the course FIN FIN taught by Professor Dr. during the Spring '09 term at Baptist College of Health Sciences.

### Page1 / 3

Autumn 2005- TBS 907- TUTORIAL 7- Cash Budgeting - TBS 907-...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online