Reference no: EM132819563

Problem 1: Your company keeps an inventory of paper (boxes of paper). The carrying cost is $0.15 per box, and the fixed order cost is $10 per order. Your firm sells 35,000 boxes per year. What is the economic order quantity?

Problem 2.1: Your company prepares monthly (30-day) cash budgets, and has an average collection period of 15 days. Expected sales for next month is $1,200. The beginning balance of accounts receivables is $500. What are cash collections for next month?

Problem 2.2: Purchases are 50% of next month's projected sales. The beginning accounts payable balance is $250, and the payables period is 10 days. Wages paid for next month will be $200, capital expenditures for next month will be $100, and the company pays $45 monthly in interest payments.

What are total cash disbursements for next month?

Problem 2.3: What is the net cash flow for next month?

Problem 2.4: What is the ending cash balance for next month?