Reference no: EM131110231
Module
Practice Problem- Cash Budgeting
Rusty Spears, CEO of Rusty's Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2015 and 2016.
Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 15%; collections during the month following the sale, 65%; collections the second month following the sale, 20%. Payments for labor and raw materials are typically made during the month following the one in which these costs were incurred. Total costs for labor and raw materials are estimated for each month as shown in the table.
General and administrative salaries will amount to approximately $15,000 a month; lease payments under long-term lease contracts will be $5,000 a month; depreciation charges will be $7,500 a month; miscellaneous expenses will be $2,000 a month; income tax payments of $25,000 will be due in both September and December; and a progress payment of $80,000 on a new office suite must be paid in October. Cash on hand on July 1 will amount to $60,000, and a minimum cash balance of $40,000 will be maintained throughout the cash budget period.
Attachment:- Practice_Problem_Cash_Budgeting.xlsx
|
Compute average operating assets and compute roi as percent
: Compute average operating assets. Compute the margin (as a percent) and turnover ratios for last year. Compute ROI as a percent.
|
|
Create a simple alice world with text
: You can reenter them into Babel Fish and cut and paste the translation from Babel Fish into Alice as needed while you develop your world,
|
|
What are expected total costs and expected costs per unit
: Assume the same facts as in part a, except the company expects to produce 49,000 units in 2015. What are the expected total costs and expected costs per unit for 2015?
|
|
Predictions of how current healthcare reform policies
: Predictions of how current healthcare reform policies will impact the future of healthcare
|
|
Estimates obtained from the credit and collection department
: Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 15%; collections during the month following the sale, 65%; collections the second month following the sale, 20%.
|
|
Do you have effective ways of handling stress
: Do you have effective ways of handling STRESS and what aspects of your studies at Excelsior College have you found especially stressful?
|
|
Multitasking computer systems
: Why do so many people believe they can think about more than one thing at a time? What effect do fast, multitasking computer systems like Unix have on such beliefs? Is this healthy or unhealthy?
|
|
Created during the installation process
: Some Linux distributions are set up so that a root userid is not created during the installation process. In such cases, your regular password serves as the superuser password. Why would a distribution be set up in this way? What are the advantage..
|
|
The most expensive metal in the world
: The element lutetium is a very heavy, rare, silvery white metal. It is considered to be the most expensive metal in the world. The Maharaja of Gaipajama wants you to babysit with his son.
|