FIN 370 Week 3 Individual Assignment - Chapter Study Questions

FIN 370 Week 3 Individual Assignment - Chapter Study Questions

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Unformatted text preview: 4-6A.The Sharpe Corporation Cash Budget WorksheetNovember December January February MarchAprilSales$220,000 $175,000 $90,000 $120,000 $135,000 $240,000 Collections:Month of sale (10%)9,000 12,000 13,500 24,000 First month (60%)105,00054,00072,00081,000Second month (30%)66,00052,50027,00036,000Total Collections180,000 118,500 112,500 141,000 Purchases (60%)72,000 81,000 144,000 180,000 162,000 Payments 72,000 81,000 144,000 180,000 Receipts(collections)180,000118,500112,500141,000Cash DisbursementsPurchases72,000 81,000 144,000 180,000 Rent10,000 10,000 10,000 10,000 Other Expenditures20,000 20,000 20,000 20,000 Tax Deposits22,500 Interest on Short-TermBorrowingTotal Disbursements102,000 111,000 196,500 210,000 Net Monthly Change$78,000 $7,500 ($84,000) ($69,000)Beginning Cash Balance22,000100,000107,50023,500Additional FinancingNeeded (Repayment) 60,500Ending Cash Balance$100,000 $107,500 $23,500 $15,000 Cumulative Borrowing$60,500 The firm will definitely have ample cash to repay the $200,000 note payable due in July. The firm should have $...
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FIN 370 Week 3 Individual Assignment - Chapter Study Questions

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