Week 3 individual assignment

Week 3 individual assignment - Sharpe Corp. Cash Budget a)...

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

View Full Document Right Arrow Icon
a) November December January February Sales $220,000.00 $175,000.00 $90,000.00 $120,000.00 Collections Month of Sale (10%) $9,000.00 $12,000.00 First Month Following (60%) $105,000.00 $54,000.00 Second Month Following (30%) $66,000.00 $52,500.00 Collections Total $180,000.00 $118,500.00 Purchases $54,000.00 $72,000.00 $81,000.00 $144,000.00 Payments (1 month lag to purchase) $54,000.00 $72,000.00 $81,000.00 Cash Receipts Collections $180,000.00 $118,500.00 Cash Disbursements Purchases $72,000.00 $81,000.00 Rent $10,000.00 $10,000.00 Other Expenditures $20,000.00 $20,000.00 Tax Deposits Interest on Borrowings Total Disbursements $102,000.00 $111,000.00 Net Change $78,000.00 $7,500.00 Beg Cash Bal $22,000.00 $100,000.00 Add Financing $- $- End Cash Bal $100,000.00 $107,500.00 Borrowed b) Sharpe Corporation will have sufficient funds to pay the $200,000.00 in notes payable due in July. T sufficient cash to sustain the desired minimum balance of $15,000.00 after the $200,000.00 in notes
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/19/2010 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

Page1 / 6

Week 3 individual assignment - Sharpe Corp. Cash Budget a)...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online