Ch_18_HW_C_Solutions

Ch_18_HW_C_Solutions - Ch 18 HW C Solutions Prepare a...

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Ch 18 HW C Solutions Prepare a quarterly cash budget for the ABC corporation. Projected quarterly sales are: Q1 Q2 Q3 Q4 NY Q1 Sales 9,500 8,500 12,500 15,500 10,000 Accounts receivable at the beginning of the year are $ 3,000. The firm has a 30 day average collection period. The firm’s purchases from suppliers in a quarter are equal to 58% of the next quarter's forecasted sales. The payables average collection period is 60 days. Beginning AP is $ 3,300. Wages, taxes and other expenses are 24% of sales, and LT interest and dividends are $1,500.00 per quarter. A capital expenditure of 150 is planned for the 3 rd quarter. Beginning cash is $200 and the minimum required balance in cash is $200. The ST borrowing rate is 8% APR and the ST investing rate is 2.4% APR. 1. Cash collections for Q1 are $__________. 2. Cash collections for Q3 are $__________. 3. Payment of Accounts for Q2 are $__________. 6. Payment of Accounts for Q4 are $__________. 7. ST borrowings for Q1 are $__________. 8.
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This note was uploaded on 11/29/2011 for the course FINANCE 332 taught by Professor Linney during the Fall '11 term at Guilford Tech.

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Ch_18_HW_C_Solutions - Ch 18 HW C Solutions Prepare a...

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