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Decision Inputs for Quarter Number 2 Company Operating Decisions Units to be produced 100,000 Per unit price $101.00 Div. per common share $0.00...

I want cash budget from attach:

Decision Inputs for Quarter Number 2 Company Operating Decisions Units to be produced 100,000 Per unit price $101.00 Div. per common share $0.00 Advertising cost $0 Demand/price forecast $0 Sales discount 0.00% Investment Decisions Short-term investment $0 Risk of S-T investment 0 Machine units bought 0 Units of plant bought 0 Project A no Project B no Financing Decisions Short-term loans $0 Prefer ed shares 0 Two-year loans $0 Common shares 0 Three-year loans $0 Common tender price $0 Ten-year bonds $0 Special Options Strike set lement (per hr.) $0.00 Dol ar penalty $0 Quarterly Performance Report Quarter Number 2 $10,508,545 Income from securities 3,120 $10,511,665 Cost of Goods Sold: Beginning Inventory: ( 12,426 at $68.32 ) $848,910 Materials $1,200,000 Direct Labor 3,559,753 Total Direct Costs $4,759,752 Warehousing Costs $28,048 Depreciation: Mach. and Equip. 478,125 Plant 1,300,000 Other Overhead Costs 200,000 Total Indirect Costs 2,006,173 6,765,926 $7,614,836 567,662 Cost of Goods Sold 7,047,174 Gross Profit $3,464,490 Sel ing and administrative expenses $1,525,427 Financial Expenses: Short Term Bank Interest $0 Penalty Loan Interest 0 Intermediate Term Loan Interest 83,030 Bond Interest 33,600 Bond Redemption Costs 0 Total Financial Charges 116,630 1,642,057 Operating Income Before Extraordinary Items $1,822,433 Extraordinary Items 0 Income Before Taxes $1,822,433 728,973 Income After Taxes $1,093,460 Prefer ed Stock Dividind 0 Earnings to Common Stockholders $1,093,460 0 Net Income Transfer ed to Retained Earnings $1,093,460 Position Statement Quarter Number 2 ASSETS Cur ent Assets Cash $2,023,280 Marketable Securities 200,000 Accounts Receivable 7,040,725 567,662 Total Cur ent Assets $9,831,666 Machinery and Equipment $1,530,000 Plant 5,865,250 Total Fixed Assets 7,395,250 Total Assets $17,226,916 LIABILITIES AND OWNER EQUITY Cur ent Liabilities Accounts Payable $495,975 Short Term Loans Payable 0 Short Term Penalty Loan 0 Intermediate Term Debt Maturing 1,550,000 Bonds Maturing 1,200,000 Total Cur ent Liabilities $3,245,975 Long Term Liabilities Intermediate Loans: 2 years $625,000 3 years 0 Bonds 900,000 Total Long Term Liabilities 1,525,000 Total Liabilities $4,770,975 Owners' Equity $0 8,000,000 Retained Earnings 4,455,941 Total Equity 12,455,940 Total Liabilities and Equity $17,226,916 Summary Data Quarter Number 2 HISTORICAL INFORMATION Common share price $29.48 Accumulated Wealth $29.59 Quarterly EPS $1.09 Dividend Yield 0.00% Price earnings ratio 6.74 Marketable Security Yield 1.56% Actual unit price $101.83 Actual unit demand 101,316 Prefer ed stock price $26.11 Prefer ed dividend yield 3.83% Return on investment 25.39% Return on equity 35.11% Cal premium: prefer ed 8.00% Bond cal premium 8.00% Common tender or sel /sh $0.00 Unpaid prefer ed dividend/share $0.00 Outstanding debt yields: Short-term 2-year loan 3-year loan Bonds Penalty loan 2.81% 3.11% 2.50% 1.40% 8.00% INFORMATION FOR FUTURE QUARTERS: 3 4 5 6 Units forecast 105,471 116,164 108,583 68,393 Price per unit forecast $102.63 $105.02 $102.31 $95.24 Units of plant capacity 100,000 100,000 80,000 50,000 Units of machine capacity 100,000 75,000 60,000 60,000 Other overhead 200,000 200,000 200,000 200,000 Depreciation: Machinery 478,125 384,375 311,250 311,250 Projects 0 0 0 0 Plant 1,300,000 1,300,000 989,000 667,500 Principal repayment on debt: Short-term 0 0 0 2-year 312,500 312,500 312,500 312,500 3-year 300,000 0 0 0 Bonds 300,000 300,000 300,000 300,000 Warehouse fees: Units First 2000 Next 5000 Over 7000 Cost/Unit $1.00 $3.00 $8.00 Production costs per unit next quarter: Materials $12.18 Machinery $54.00 Plant $362.00 Units First 60,000 Next 40,000 Next 20,000 Over 120,000 Labor cost $40.34 $30.00 $25.86 $34.13 Rates on funding in quarter 3 Short-term 2-year loan 3-year loan Bond Prefer ed 3.14% 3.29% 3.45% 3.77% 4.71% Interest due next quarter: Short-term $0 Intermediate $65,812 Bonds $29,400 Capital budgeting projects for next quarter: Life Cost Unit Capacity Overhead Saving Unit Labor sav., Qtr.3 Change/Qtr. Labor Sav. A 2-yr $629,400 100,000 $14,887 $0.78 $0.03 B 3-yr $472,560 120,000 ($8,958) $0.78 ($0.02) Sales revenue ( 104,045 units at $101.00 ) Production Costs ( 100,000 at $67.66 ) Goods Available for Sale ( $67.73 per unit ) Less: Ending Inventory ( 8,381 units ) Income Tax ( rate is 40%) Common Stock Dividends ( $0.00 per share ) Inventory ( 8,381 units at $67.73 /UNIT ) Fixed Assets ( net of depreciation Prefer ed Stock ( 0 shares ) Common Stock ( 1,000,000 shares )
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Dear Student Please find... View the full answer

Finance - 8360893.xls

SOLUTION:
Cash Budget
Particulars 3 Quarter Beginning Balance
Cash from Sales $2,023,280.00
$10,824,488.73 Payments:
Other overhead
2-year loan
3-year loan
Bonds
Warehouse fees
Production Costs...

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