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Cash Budget Graded Practice Problem
The owner of Lazy Inn has been requested by First National Bank to submit a cash budget for the next calendar year. With that in mind, please prepare the following:
After preparing the above schedule, can you provide the owner with some guidance as to whether:
Cash Inflows
Room
Qty
Jan-Mar & Dec. Price/Occupancy Rate
Apr-May Price/Occupancy Rate
June-Aug Price/Occupancy Rate
Sept.-Nov. Price/Occupancy Rate
1 king size bed/room
10
$58 / 85%
$40 / 50%
$58 / 75%
$45 / 55%
2 king size beds/room
60
$70 / 80%
$48 / 55%
$50 / 58%
2 bedroom (2 kings/room)
20
$80 / 78%
$60 / 40%
$80 / 88%
$64 / 60%
10 executive suites
$120 / 95%
$90 / 45%
$120 / 100%
$95 / 65%
On your cash budget, be sure to show each room type's cash flow individually (and total for all rooms by month)
Cash Outflows
What is the highest cumulative amount that needs to be borrowed during this 12 month period? Use the roundup function to round this amount to the highest thousand dollar amount (e.g. 12,400 would become 13,000).
As usual, use only functions and formulas along with proper formatting in preparing this cash budget. DO NOT have any numbers in formulas. Results should be to the nearest dollar.
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