HW3solutions

HW3solutions - Chapter 4 Financial Planning and Forecasting...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4 Financial Planning and Forecasting 4-1 Home Work 3 Solutions 5. Elmwood Manufacturing Company Cash Budget Worksheet First Quarter, 2009 December January February March April Estimated Sales $4,600,000 $6,400,000 $11,200,000 $8,400,000 $7,000,000 (all on credit) Estimated Receipts 60% of last month’s sales -- 2,760,000 3,840,000 6,720,000 -- 40% of current month’s sales -- 2,560,000 4,480,000 3,360,000 -- Total A/R Collections 5,320,000 8,320,000 10,080,000 Estimated Purchases * 1,920,000 3,360,000 2,520,000 -- -- Estimated Payments** -- 1,920,000 3,360,000 2,520,000 * 30% of next month’s estimated sales ** Payments lag purchases by one month
Background image of page 1

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

View Full DocumentRight Arrow Icon
Chapter 4 Financial Planning and Forecasting 4-2 Cash Budget First Quarter, 2009 December January February March April Sales $4,600,000 $6,400,000 $11,200,000 $8,400,000 $7,000,000 Projected cash balance, beginning of month $1,500,000 $750,000 $750,000 Receipts: Collection of A/R 5,320,000 8,320,000 10,080,000 Total cash available $6,820,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/26/2011 for the course FIN 5219 taught by Professor Nadia during the Spring '08 term at Texas Tech.

Page1 / 4

HW3solutions - Chapter 4 Financial Planning and Forecasting...

This preview shows document pages 1 - 3. Sign up to view the full document.

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