50.1K

Verified Solution

Link Copied!

just number 6 but think it needs information from 4

what information?????

4. (Cash budget-outflows) The firm of Problem 2 proj- ects the following cash outflows for the months of September, October, and November: Production costs $250,000 per month Operating costs 125,000 per month Tax payment 40,000 in October Purchase of plant 50,000 in September Payment of interest on debt 20,000 in September Payment of debt principal 45,000 in September Payment of dividends 20,000 in November Prepare a schedule of cash outflows for the months of September, October, and November. 5. (Cash budget-full projection) The firm of Problems 1 and 3 has a cash balance of $20,000 on March 1, which is its target cash balance. Prepare the bottom section of its cash budget showing net in(out)flow and monthly cash reconciliation for the months of March, April, and May. 6. (Cash budget-full projection) The firm of Problems 2 and 4 has a cash balance of $35,000 on September 1, which is its target cash balance. Prepare the bottom section of its cash budget showing net in(out)flow and monthly cash reconciliation for the months of September, October, and November. SCHEDULE OF CASH OUTFLOWS FOR MONTHS OF SEPTEMBER OCTOBER AND NOVEMBER: Particulars September October Production costs $2,50,000 $2,50,00 Operating costs $1,25,000 $1,25,000 Tax payment $40,000 Purchase of plant $50,000 Payment of Interest on Debt $20,000 Payment of Debt Principal $45,000 Payment of Dividends Cash outflows for the month $4,90,000 $4,15,00 5. 2. (Cash budget-inflows) A firm has the following data for sales: Cash sales Credit sales Actual: July $95,000 $150,000 August 110,000 175,000 Forecast: September 150,000 250,000 October 185,000 300,000 November 200,000 350,000 Past experience is that 20% of credit sales is collected in the month of sale, 60% one month after sale, 17% two months after sale, and the remaining 3% of credit sales becomes bad debts. Prepare a schedule of cash inflows for the months of September, October, and November 6

Answer & Explanation Solved by verified expert

See Answer