Reference no: EM13199404
Capers, Inc. is developing its cash budget for the next year. Of Capers' sales, 20% is for cash, another 60% is collected in the month following sale, and 20% is collected in the second month following sale. November and December sales for 2010 were $229000 and $250,000, respectively.
Capers' purchases its raw materials two months in advance of its sales equal to 70% of its final sales price. The supplier is paid one month after it makes delivery. For example, purchases for April sales are made in February, and payment is made in March.
In addition, Capers pays $10,000 per month for rent and $20,000 each month for other expenditures. Tax prepayments for $32,000 are made each quarter beginning in March.
The company's cash balance at December 31, 2010, was $26,000 and minimum balance of $25,000 must be maintained at all times. Assume that any short-term financing needed to maintain cash balance would be paid off in the month following the month of financing if sufficient funds are available.
Interest on short-term loans (12%) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. For example, if in the month of April the firm expects to have a need for an additional $60,500, these funds would be borrowed at the beginning of April with interest of $605 (.12 x 1/12 x $60,500) owed for April and paid at the beginning of May.
Sales for Capers Inc.:
|
January
|
$229,000
|
|
February
|
$250,000
|
|
March
|
$270,000
|
|
April
|
$275,000
|
|
May
|
$280,000
|
|
June
|
$290,000
|
|
July
|
$280,000
|
|
August
|
$260,000
|
Required:
- Prepare a monthly cash budget for Capers Inc. covering the first 7 months of 2010.
|
In how many hours will airplane b to catch up to airplane a
: airplane B takes off 60 minutes after airplane A and heads in the same direction. if airplane A travels with a constant velocity of 735 mph and airplane B with a constant velocity of 1070 mph, in how many hours will airplane B to catch up to airpl..
|
|
What is the height of the building
: The angle of elevation to the top of a building from a point on the ground is 39 degrees. From a point 50 feet closer to the building, the angle of elevation is 45 degrees. What is the height of the building?
|
|
Examine the influence that legal issues
: Analyze the influence that legal issues, ethics, and corporate social responsibility have had on management planning at your chosen company. Provide at least one example for each.
|
|
Use x and y to denote floor
: The sales representative here tells you they also have two floor plans available, but they only have 38 homes still for sale. Write an equation that illustrates the situation. Use x and y to denote floor plan one and floor plan two respectively.
|
|
Prepare a monthly cash budget for capers inc
: Prepare a monthly cash budget for Capers Inc. covering the first 7 months of 2010 - Borrowing to meet estimated monthly cash needs takes place at the beginning of the month
|
|
Defining strategies to improve patient intake
: Write a 750- to 1,050-word essay discussing strategies to improve patient intake efficiency not covered in the text. Include the following components in your essay:
|
|
What is the minimum score
: vin needs 420 points to have a B average in math. His scores so far are 88, 89, 79, and 77. What is the minimum score he can make on the next test to maintain the b?
|
|
What is the significance of resource pricing
: Explain how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand. Why do resource demand curves slope downward
|
|
State the predictable outcome of historical developments
: the predictable outcome of historical developments before 1914? Or was Tsarism likely to have survived had it not been for the First World War?
|