question archive The following information is provided by Greenbelt Enterprises: Source: Principles of Managerial Finance
The following information is provided by Greenbelt Enterprises: Source: Principles of Managerial Finance
Subject:FinancePrice: Bought3
The following information is provided by Greenbelt Enterprises: Source: Principles of Managerial Finance. 14th ed.. Gitman & Zutter Actual: May Actual: June July August September October November December Sales $ 50,000 $ 60,000 $ 70,000 $ 80,000 $ 100,000 $ 107,000 $118,000 $195,000 Table 4.7 The General Format of the Cash (a Greenbelt had cash balance of $5,000 on July 1, and wishes to maintain a minimum cash balance of $5,000. Budget (b The firm makes 20% of sales for cash, 60% are collected in the following month, and the remaining 20% are collected in the second month after the sale. (c) Greenbelt has other income of $2,000 per month. (d ) Its actual or expected purchases, all paid for in cash, are $50,000, $70,000 and $80,000 for the months of July, August and September, respectively. Jan. Feb. Nov. Dec. (e ) Rent is $13,000 per month. Total cash receipts SXXA SXXH SXXN SXXU (f ) Wages and salaries are 10% of the previous month's sales. Less: Total cash disbursements XXB XXI . . . XXO XXV (8) Cash dividends of $2,000 will be paid in July. Net cash flow $XXC SXXI SXXI SXXW Add: Beginning cash XXD XXE XXK XXQ XXR (h Payment of principal and interest of $24,000 is due in August. Ending cash SXXE XXK SXXR / SXXX ( i) A cash equipment purchase costing $6,000 is scheduled in September. Less: Minimum cash balance XXF XXI . . . XXS XXY ( j) Taxes of $6,000 are due in July. Required total financing SXXM SXXT Excess cash balance $XXG $XXZ Based on the information provided by Greenbelt Enterprises, prepare a cash budget for the firm in the months of July through December. Using the CONDITIONAL FORMATTING Excel function, determine whether Greenbelt needs to arrange for short-term financing of its cash needs in each month. Refer to the format of cash budget to organize your data. ACTUAL PROJECTED May June July August September October November December Copyright 02015 Pearson 4-33 Sales $ 50,000 $ 60,000 70,000 $ 80,000 $ 100,000 $ 107,000 $118,000 $195,000 Total cash receipts Total cash disbursements Net cash flow Beginning cash balance 5.000 Less: Minimum cash balance (5,000) Ending cash balance 5,000 Financing required (notes payable) Invest in Marketable Securities
