Session 5_Problem 2_Page 104_Answer_FIN615

Session 5_Problem 2_Page 104_Answer_FIN615 - 0.75 Total...

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Loblaw Manufacturing Cash Budget August to December 20 June July August Sales 125,000 140,000 160,000 Collections: Cash 30% 48,000 First Month 60% 84,000 Second Month 10% 12,500 Total Collections 144,500 Purchases 65% 104,000 71,500 Payments: During Month 40% 28,028 Month After 60% 62,400 Total Payments 90,428 Collections 144,500 Disbursements: Inventory Payments 90,428 Short-term Interest - Other Payments 80,000 Total Disbursements 170,428 Beginning Cash Balance 30,000 Net Additions to Cash (25,928) Unadjusted Cash Balance 30,000 4,072 Add: Current Borrowing - 25,928 Ending Cash Balance 30,000 30,000 Cumulative Borrowing - 25,928 Minimum Cash Balan 30,000 Discount for Paying i 2.00% Annual Interest Rate 9.00% Monthly Interest Rate
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Unformatted text preview: 0.75% Total Interest Cost 689 g 008 September October November December January 110,000 95,000 84,000 76,000 90,000 33,000 28,500 25,200 22,800 96,000 66,000 57,000 50,400 14,000 16,000 11,000 9,500 143,000 110,500 93,200 82,700 61,750 54,600 49,400 58,500 24,206 21,403 19,365 22,932 42,900 37,050 32,760 29,640 67,106 58,453 52,125 52,572 143,000 110,500 93,200 82,700 67,106 58,453 52,125 52,572 194 114 175 205 65,000 60,000 45,000 48,000 132,300 118,567 97,300 100,777 30,000 30,000 30,000 30,000 10,700 (8,067) (4,100) (18,077) 40,700 21,933 25,900 11,923 (10,700) 8,067 4,100 18,077 30,000 30,000 30,000 30,000 15,228 23,296 27,395 45,473...
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This note was uploaded on 07/24/2009 for the course FIN FIN taught by Professor Robbani during the Summer '09 term at University of Maryland Baltimore.

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Session 5_Problem 2_Page 104_Answer_FIN615 - 0.75 Total...

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