Cash budget for Redbird for Jan 2010 to July 2010
Opening Cash Balance
Janauary Feburary March
April
May
22000
84000
80000
20000
Cash Receipts
Borrowed Funds
Cash Sales for the Month
20000
Cash Collected One month After Sales105000
Cash Collected Two mont
CHAPTER 14
Financial Forecasting, Planning,
and Budgeting
CHAPTER ORIENTATION
This chapter is divided into two sections. The first section includes an overview of the role
played by forecasting in the firms planning process. The second section focuses on
1
CHAPTER TWO PROBLEMS
1.
Last year Rattner Robotics had $5 million in operating income (EBIT). The company
had net depreciation expense of $1 million and an interest expense of $1 million; its
corporate tax rate was 40 percent. The company has $14 millio
CHAPTER 2
TIME VALUE OF MONEY
(Difficulty: E = Easy, M = Medium, and T = Tough)
Note:
Most problems assume students have a calculator with a yx feature
(i.e., an exponential feature).
Annuity problems for finding the interest
rate or the number of periods
What is the value of a stock with
$ DT +1 '
Dt
#T
)(1 + r)
t +&
% r # gc (
t =1 (1 + r )
T
The stock value is found from: P0 = "
P0 is the stock price at time t = 0
Dt is the expected dividend at time t = Dt-1(1 + gi)
!
r is the required rate of return
gi
Cash conversion cylce toyota motors
Inventory turnover period
Accounts receivable turnover period
Accounts payable turnover period
cash cycle
Lilii manufacture
Eoq Model
Number of orders in EOQ model
Ordering cost of cases
1 time a year
6 times a year
12
Problem:
4-6A
(Cash budget) The Sharpe Corporations projected sales for the first eight months of
2004 are as follows:
January $ 90,000
February 120,000
March
135,000
April
240,000
May
$300,000
June
270,000
July
225,000
August 150,000
Of Sharpes sales, 10
Sheet1
EOQ: Lillys Manufacturing needs fastener supplies to manufacture its products. The CFO estimates that the
company will need about 200,000 cases next year. The cost of storing cases is about $0.90. The ordering cost
$500 for a shipment.
Determine th
Practice Questions for Finance 3000, Exam II, Fall 2009
Chapter 3
1. Ratios are used to compare different firms in the same industry.
TRUE
2. Financial ratios are used to weigh and evaluate the operational performance of the firm.
TRUE
3. Liquidity ratios
Chapter 3 Analysis of Cost, Volume, and Pricing to Increase Profitability
Answers to Questions
1.
Break-even is the point where total revenue is equal to total costs.
It can be measured in units or sales dollars.
2.
In the contribution margin income state
Course: Financial Management
Term: III
Section A
Attempt all questions
Each question carries 6 marks [5 x 6 =30]
1. You have to pay $12,000 a year in school fees at the end of each of the next six years. If the
interest rate is 8%, how much do you need to
Chapter 6: Breakeven and Leverage Analysis
Companies face two kinds of costs
Variable costs are expected to change with Sales; they are constant per unit
Examples include sales commissions, raw materials, hourly wages
Fixed costs are constant, regardless