Dave Dern, the chief financial officer, is responsible for Th e Grand Designs cash budget for 2013.

Question:

Dave Dern, the chief financial officer, is responsible for Th e Grand Design€™s for 2013. The budget will help Dem determine the amount of long-term borrowing needed to end the year with a cash balance of $135,000.
Dern€™s assistants have assembled budget data for 2013, which the computer printed in alphabetical order. Not all the data items reproduced below are used in preparing the

Requirements
1. Construct the cash budget of The Grand Design, Inc.
2. Compute The Grand Design€™s budgeted current ratio and debt ratio at December 31, 2013. Based on these ratio values, and on the cash budget, would you lend $95,000 to The Grand Design? Give the reason for yourdecision.

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...

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Dave Dern, the chief financial officer, is responsible for Th e Grand Designs cash budget for 2013.

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Financial accounting

Dave Dern, the chief financial officer, is responsible for Th e Grand Designs cash budget for 2013.

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Req 1 The Grand Design Inc Cash Budget Year Ended December 31 2013 Thousands Cash b...View the full answer

Financial accounting

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