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Current Asset Management 11

# Current Asset Management 11 - Total Gain(Loss Cash at Start...

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Old Exam Questions - Current Asset Management Page 11 of 12 Pages Based on this information, determine how much excess cash (or loans) the firm will have at the end of July. (Note: the following table is provided for your convenience, its use is not required.) Cash Budget Actual Forecasted March April May June July Sales \$2,000.00 \$1,500.00 \$1,800.00 \$2,300.00 \$2,800.00 Collections Month 0 - 20% \$400.00 \$300.00 \$360.00 \$460.00 \$560.00 Month 1 - 55% Month 2 - 20% Total P&W -\$1,600.00 -\$1,200.00 -\$1,440.00 -\$1,840.00 -\$2,240.00 P&W Lagged Salaries Lease Depreciation Miscellaneous Taxes Paid
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Unformatted text preview: Total Gain (Loss) Cash at Start \$300.00 Cumulative Desired -\$400.00-\$400.00 -\$400.00 Excess Cash Loans A. \$150.00 B. \$ 60.00 C. \$180.00 D. \$ 90.00 E. \$120.00 22. Assume that a company believes that it will need to order 250,000 units of inventory over the coming year. The current price of inventory is \$4 per unit. Fixed ordering charges for inventory are \$20.00 per order and carrying costs for inventory are equal to 10 percent of the average value (price, net of discount, if any) of the inventory carried. As you can calculate, the optimal order quantity is:...
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