SEATWORK4 4-6A - 30,000 84,000 102,000 111,000 196,500...

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SEATWORK # 4 4-6A Sharpe Corporation Cash Budget For the Seven Months Ended July 31, 2004 Cash Receipts Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sales 220,000 175,000 90,000 120,000 135,000 240,000 300,000 270,000 225,000 150,000 Cash Sales (10% of sales) 22,000 17,500 9,000 12,000 13,500 24,000 30,000 27,000 22,500 15,000 Collection of AR: One-month lag (60% of sales) - 132,000 105,000 54,000 72,000 81,000 144,000 180,000 162,000 135,000 Two-months lag (30% of sales) - - 66,000 52,500 27,000 36,000 40,500 72,000 90,000 81,000 Total Cash Receipts 22,000 149,500 180,000 118,500 112,500 141,000 214,500 279,000 274,500 231,000 Cash Disbursements 54,000 72,000 81,000 144,000 180,000 162,000 135,000 90,000 - - Payment of AP: One-month lag (100%) 54,000 72,000 81,000 144,000 180,000 162,000 135,000 90,000 - Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Other expenditures 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Tax prepayments 22,500 22,500 Total Cash Disbursements
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Unformatted text preview: 30,000 84,000 102,000 111,000 196,500 210,000 192,000 187,500 120,000 30,000 Cash Budget Cash Receipts 180,000 118,500 112,500 141,000 214,500.00 279,000.00 274,500.00 Less: Cash Disbursements 102,000 111,000 196,500 210,000 192,000.00 187,500.00 120,000.00 Net monthly change 78,000 7,500 (84,000) (69,000) 22,500.00 91,500.00 154,500.00 Add: Beginning cash balance 22,000 100,000 107,500 23,500 15,000.00 15,000.00 67,508.95 Less: Interest on short-term borrowing (1%) 605.00 386.05 100,000 107,500 23,500 (45,500) 36,895.00 106,113.95 222,008.95 Financing needed 60,500 (21,895.00) (38,605.00) Ending cash balance 100,000 107,500 23,500 15,000 15,000.00 67,508.95 222,008.95 Cumulative borrowing 60,500 38,605.00 b. Yes, the firm has ample cash to repay the notes worth $200,000 due in July. Purchases (two months in advance of its sales equal to 60% of sales Ending cash balance before short-term borrowing...
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This note was uploaded on 06/26/2011 for the course ACCT 101 taught by Professor Gobaco during the Spring '11 term at De La Salle University.

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