FIN370 CH4, 5, & 15 SQs

FIN370 CH4, 5, & 15 SQs - Chapter Study Questions 1...

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Chapter Study Questions 1 FIN/370 Chapter 4 - Cash Budget 1. Prepare a cash budget for Company X covering January through July. Company X Cash Budget for January through July Jan Feb Mar Apr May Jun Jul Sales 105,000 115,000 135,000 255,000 280,000 255,000 240,00 0 Collections:
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Chapter Study Questions 2 1st mth (50%) 90,000 52,500 57,500 67,500 127,500 140,000 127,50 0 2nd mth (25%) 56,250 45,000 26,250 28,750 33,750 63,750 70,000 Total Collections 146,250 97,500 83,750 96,250 161,250 203,750 197,50 0 Purchases (75% of 2 mth sales) 101,250 191,250 210,000 191,250 180,000 123,750 Payment (1 mth lag) 86,250 101,250 101,250 210,000 191,250 180,000 123,75 0 Cash Budget Cash receipts 146,250 97,500 83,750 96,250 161,250 203,750 197,50 0 Cash Disbursements Purchases 86,250 101,250 101,250 210,000 191,250 180,000 123,75 0 Rent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Other Expenses 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Quarterly Tax Payments 23,000 23,000 Total Disbursements 116,250 131,250 154,250 240,000 221,250 233,000 153,75 0 Net mthly change 30,000 -33,750 -70,500 -143,750 -60,000 -29,250 43,750 Plus: Beginning Cash Balance 22,000 52,000 20,000 20,000 20,000 20,000 20,000 Less: Interest short-term borrowing 0 0 18 723 2,167 2,809 3,130 Equals: Ending Cash Balance before short-term borrowing 52,000 18,250 -50,518 -124,473 -42,167 -12,059 60,620 Financing needed 0 1,750 70,518 144,473 64,167 32,059 - 40,620 Ending Cash Balance 52,000 20,000 20,000 20,000 20,000 20,000 20,000 Cumulative borrowing 0 1,750 72,268 216,741 280,908 312,967 0
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This note was uploaded on 08/22/2011 for the course BUS 415 taught by Professor Barnes during the Spring '11 term at Coastal Carolina University.

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FIN370 CH4, 5, & 15 SQs - Chapter Study Questions 1...

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