Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Shia LeBeuf, a financial analyst for Transformers Company, has prepared the following sales and cash disbursement estimates for the period Feb - Jun of the current year:

Month Sales Cash Disbursements

Feb $500 $400

Mar $600 $300

Apr $400 $600

May $200 $500

Jun $200 $200

LeBeuf notes that, historically, 30% of sales have been for cash. Of credit sales, 70% are collected one month after the sale, the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a minimum ending balance in its cash account of $25. Balances above that amount would be invested in short term government securities (marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable). The beginning cash balance at Apr 1 is $115.

a) Prepare a cash budget for Apr, May and Jun

b) Decide how much financing, if any, at a maximum, would Transformers require to meet its obligations during this 3 month period. (please show your work).

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M946462

Have any Question? 


Related Questions in Basic Finance

In each of 4 years a random sample of 100 voters different

In each of 4 years a random sample of 100 voters (different each year) are asked if they support a political party. The numbers each year who support the party are 41, 32, 35, and 33. (a) Give a 95 percent confidence int ...

1 what types of fees and conditions are prohibited under

1. What types of fees and conditions are prohibited under RESPA? 2. For what items may a lender require escrow accounts from a borrower?

Examine the following pairs of puts which differ only by

Examine the following pairs of puts, which differ only by exercise price. Determine if any violate the rules regarding relationships between American options that differ only by exercise price. a. August 155 and 160 b. O ...

After reading the information contained on the web site

After reading the information contained on the Web site www.moneycrashers.com/ five-steps-to-effective-budgeting/, answer the following questions: a. What are three good sources of information that can be accessed to beg ...

100 of the purchase price or it can lease the machinery

100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: 1. The machinery falls into the MACRS 3-year class. 2. Under either the lease or purchase, Big Sky must pay for insurance, ...

Required for each of the following numbered items you are

Required For each of the following numbered items, you are to select the lettered item(s) that indicate(s) its effect(s) on the corporation's statements. If more than one effect is applicable to a particular item, be sur ...

1 why have railroad miles declined during a period of

1. Why have railroad miles declined during a period of national growth? 2. Railroads have the largest percentage of intercity freight ton-miles, but motor carriers have the largest revenue. How do you explain this relati ...

Project finance is difficult to define what are its

Project finance is difficult to define. What are its essential features? When deciding whether or not to back a project finance proposition, what essential features do potential lenders home in on?

1 what is the secondary mortgage market list three reasons

1. What is the secondary mortgage market? List three reasons why it is important. 2. What were the three principal activities of FNMA under its 1954 charter? What is its principal function now? 3. Name two ways that FNMA ...

1 for each of the following patterns of databull what is

1. For each of the following patterns of data, • What is the probability of the researcher having made a Type 1 error? • What is the probability of the researcher having made a Type 2 error? • Should the null hypothesis ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro