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Calculate the operating and cash cycles.

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2012, credit sales were $196,000 and credit purchases were $134,400. Using this information, complete the following cash budget:

		April		May		June
Beginning cash balance	$	112,000	$		$
Cash receipts
Cash collections from credit sales
Total cash available	$		$		$
Cash disbursements
Purchases	$		$		$
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements	$		$		$
Ending cash balance	$		$		$

Saunders Corp. has a book net worth of $13,205. Long-term debt is $8,200. Net working capital, other than cash, is $3,205. Fixed assets are $17,380 and current liabilities are $1,630. - How much cash does the company have? - What is the value of the current assets? Problem 2 Consider the following financial statement information for the Schwertzec Corporation: Calculate the operating and cash cycles. Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2012: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2012, credit sales were $196,000 and credit purchases were $134,400. Using this information, complete the following cash budget

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