Calculate firm expected ending cash balance for each month

Reference no: EM131244920

Problem 1 -

Deltona Auto Care has an ending cash balance as of January 31, 2015 (the end of its fiscal year) was $15,000. Its expected cash collections and payments for the next 6 months are give in the following table.

Month	Collections	Payments
February	24750	29100
March	27450	31200
April	34050	32400
May	43650	36450
June	48750	40050
July	54000	40800

a. Calculate the firm's expected ending cash balance for each month.

b. Assuming that the firm must maintain an ending cash balance or at least $12,000, how much must they borrow during each month?

c. If the firm must pay 5% annual interest on its short term debt.

Problem 2 -

Input sales for each year

Using the Goal Seek Tool find the breakeven point

Using the Goal Seek Tool find the breakeven point with ab EBIT of 1500

Calculate the DOL, DFL, and the DTL with both the %? method and the Q, P, V, F method.

Problem 3 -

The manager of Conneaut Concesstions would like to see the results of streching out its payments on its Maximum Borrow Requirements create a Scenario of the first month payments being 15%, 20%, 25%, and 30%.

Problem 4 -

Complete a 5 year forecast for both the Balance Sheet and the Income Statement the "Percent of Sales "approach

A. Use both the Trend function and the Regression function to forecast Sales.

B. Provide an analysis of the statisitical significance of the model.

HINTS:

Percent of sales assumes that all items will remain the same percentage of sales as the original 3 years.

The regression function should only have 3 observations.

Attachment:- Problems.rar

Reference no: EM131244920

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