question archive Farm-to-Market (FM) is a major food cooperative
Farm-to-Market (FM) is a major food cooperative
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Farm-to-Market (FM) is a major food cooperative. Suppose FM begins 2015 with cash of $7 million. FM estimates cash receipts during 2015 will total $103 million. Planned payments will total $97 million. To meet daily cash needs next year, FM must maintain a cash balance of at least $11 million. Prepare the organization’s cash budget for 2015.
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Farm-to-Market (FM) |
|
|
Cash Budget |
|
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Year 2015 |
|
|
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Millions |
|
Cash balance, beginning |
$ 7 |
|
Estimated cash receipts-total |
103 |
|
|
110 |
|
Estimated cash payments-total |
(97) |
|
Cash available (needed) before new financing |
13 |
|
Budgeted cash balance needed |
(11) |
|
Cash available for additional investments |
$ 2 |
