+1-415-670-9189
info@expertsmind.com

# Get Solution

What was fielding projected loss for march
Course:- Finance Basics
Reference No.:- EM13304119

 Tweet

Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

Fielding Wilderness Outfitters had projected its sales for the first six months of 2008 to be as follow:
Jan. \$ 50,000
Feb. \$ 60,000
Mar. \$ 100,000
April \$ 180,000
May \$ 240,000
Jun \$ 240,000

cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to the sale. 40% of sales are collectd in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are \$40,000/month. the company's cash balance as of March 1st, 2008 is projected to be \$ 40,000, and the company wants to maintain a minimum cash balance of \$15,000. Excess cash will be used to retire short term borrowing ( if any exists). Fielding has no short term borrowing as of March 1st, 2008. Assume that the interest rate on short term borrowing is 1% per month. What was Fielding's projected loss for March?

a/ \$84,000
b/ \$110,000
c/ \$184,000
d/ none of above

Minimize