The writer is very fast, professional and responded to the review request fast also. Thank you.
Exercise 4 (Short-Term Finance and Planning)
You are hired as a financial manager and your first task is to establish the cash budget of your firm.
You gathered the following information.
The firm receives all income from sales
Ø Sales estimates (in millions)
l Q1 = 1,000; Q2 = 1,250; Q3 = 1,500; Q4 = 2,000; Q1 next year = 1,200
Ø Accounts receivable
l Beginning receivables = $3000
l Average collection period = 45 days
Ø Accounts payable
l Purchases = 60% of next quarter’s sales
l Beginning payables = 1,200
l Accounts payable period is 45 days
Ø Other expenses
l Wages, taxes, and other expense are 25% of sales
l Interest and dividend payments are $100
l A major capital expenditure of $500 is expected in the second quarter
Ø The initial cash balance is $100 and the company maintains a minimum balance of $50
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more