Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

1) The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale.

2) The firm receives other income of $2,000 per month.

3) The firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and $80,000 for the months of May through July, respectively.

4) Rent is $3,000 per month.

5) Wages and salaries are 10% of the previous month's sales.

6) Cash dividends of $3,000 will be paid in June.

7) Payment of principal and interest of $4,000 is due in June.

8) A cash purchase of equipment costing $6,000 is scheduled in July.

9) Taxes of $6,000 are due in June.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940661

Have any Question? 


Related Questions in Basic Finance

Define the term stabilization policy and describe how it

Define the term stabilization policy and describe how it can be used to reduce the volatility of economic growth and inflation. Do stabilization policies improve everyone's welfare?

Assignment discussion-financing decisionsthe funding

Assignment: Discussion-Financing Decisions The funding choices of a company have important implications for both the risk and valuation of the company and the securities held by the corporate stakeholders. The analysis c ...

What is moral hazard why does deposit insurance inherently

What is moral hazard? Why does deposit insurance inherently involve moral hazard? What factors contribute to moral hazard on the internatinal level?

If you have a portfolio with a market value of 1000000 and

If you have a portfolio with a market value of $1,000,000 and a beta (measured against the S&P 500) of 0.7, then if the market rises by 9.6 percent, what value would you expect your portfolio to have?

A 525 percent coupon bond with 18 years left to maturity

A 5.25 percent coupon bond with 18 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,090.90. What is the yield to call of the bond? (Assume i ...

If prices and wages always change by exactly the same

If prices and wages always change by exactly the same percentage and are expected always to do so, how is the short- run aggregate supply curve shaped? Make an argument that in this case, there is no such thing as a shor ...

What is the difference between the types of projects

What is the difference between the types of projects financed by the World Bank and those funded by the International Finance Corporation?

Assignment lasa npv sensitivity risk bias and ethics in

Assignment: LASA: NPV, Sensitivity, Risk, Bias and Ethics in Capital Budgeting Investment projects should never be selected through purely mechanical processes. Managers should ask questions about the positive net presen ...

Discuss the contention that differences in the performance

Discuss the contention that differences in the performance of various firms within an industry limit the usefulness of industry analysis.

Text book broker responsibility edition 20chapter 1are

Text Book: "Broker Responsibility" Edition 2.0 Chapter 1 Are there any violations of the Act or TREC rules if the rebate was not paid to avoid violation of RESPA? Chapter 2 1. What are the best methods to communicate lim ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate