Reference no: EM131423094
Short-Term Financial Management
To avoid any uncertainty regarding his business' financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:
March $100,000
April $275,000
May $320,000
June $450,000
July $700,000
August $700,000
September $825,000
October $500,000
November $115,000
He has also gathered the following collection estimates regarding the forecast sales:
• Payment collection within the month of sale = 25%
• Payment collection the month following sales = 55%
• Payment collection the second month following sales = 20%
Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:
March $187,500
April $206,250
May $375,000
June $337,500
July $431,250
August $640,000
September $395,000
October $425,000
Additional financial information is as follows:
• Administrative salaries will approximately amount to $35,000 a month.
• Lease payments around $15,000 a month.
• Depreciation charges, $15,000 a month.
• A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.
• Income tax payments estimated to be around $55,000 will be due in both June and September.
• And finally, miscellaneous costs are estimated to be around $10,000 a month.
• Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.
To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.
prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November.
o Use Excel to prepare the monthly cash budget.
• Based on your cash budget findings, answer the following questions:
o Will the company need any outside financing?
o What is the minimum line of credit that CBM will need?
o What do you think of CBM's cash position during the budget period? Do you see any concerns for the company in this regard?
o If you were a bank manager, would you want CBM as your client? Why or why not?
What are the possible values of y
: The random variable Y is the number of the trial on which the first success occurs. What are the possible values of Y? What is the probability P(Y = k) for any of these values?
|
What does this mode offer in terms of care
: Examine this mode of delivery and address the following elements in your discussion:Describe the type of care this option provides. Consider the following:Who is the target client?What professionals work within that mode?What does this mode offer in ..
|
What is probability that your roll is even or greater than 4
: If you roll a die, the probability of each of the six possible outcomes (1, 2, 3, 4, 5, 6) is 1/6. What is the probability that your roll is even or greater than 4?
|
Determine the time to make one pass across the surface
: A face milling operation is used to machine 6.0 mm in a single pass from the top surface of a rectangular piece of aluminum 300 mm long by 125 mm wide. The cutter has four teeth (cemented carbide inserts) and is 150 mm in diameter.
|
Find what is minimum line of credit that cbm will need
: What is the minimum line of credit that CBM will need? What do you think of CBM's cash position during the budget period? Do you see any concerns for the company in this regard?
|
Analyze a scholarly article on victimology
: Select and analyze a scholarly article on victimology. You may use this week's required readings to guide you in your selection of a contemporary victimology article. In a critical analysis of the article, evaluate empirical data regarding crime v..
|
What is the probability that the next 2 cards dealt to slim
: What is the probability that the next 2 cards dealt to Slim will be diamonds? This outcome would give him 5 cards from the same suit, a very good hand and called a flush.
|
Explain why given rule applies in given setting
: What rule did we use? In given Example, we calculated P(B). What rule did we use for this calculation? Explain why this rule applies in this setting.
|
Determine the bearing stress between the pin at a
: The beam with hollow box cross-section is supported with a pin at A and a roller at B, where the pin diameter is 1.25 in. The outer dimensions of the box beam are 6 in. high by 8 in. wide and the wall thickness is 0.625 in.
|