week 11
jfamahRequired:
Download the Week 11 Problems Excel spreadsheetto use in completing your problems.
1. Given the following information:
75 percent of sales are for credit, and collections occur after thirty days.
A $100,000 Treasury bill matures in March.
Monthly fixed disbursements are $13,000.
Variable disbursements are 62 percent of sales and occur one month prior to sales.
A tax payment of $13,500 is due in February.
The initial cash is $20,000.
The minimum required cash balance is $5,000.
Variable cash disbursements for April are $30,000.
Sales | |
January | 0 |
February | 60,000 |
March | 80,000 |
April | 100,000 |
Construct the firm's cash budget for the given months.
2. Given the following information:
Sales | |
June | $200,000 |
July | 200,000 |
August | 200,000 |
September | 300,000 |
October | 500,000 |
November | 200,000 |
3.
70% of the sales are for credit and are collected one month after the sale. Other receipts: $50,000 in October
Variable disbursements: 60% of sales each month
Other disbursements: $10,000 a month
$80,000 for taxes in August
$400,000 for debt repayment in November
Beginning cash: $50,000
Desired cash: $10,000
Prepare a monthly cash budget for this firm
- 10 years ago
- 20
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- cash_budget_13_dec.xls
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- answer-week_11_problems.xls