Farm-to-Market (FM) is a major food cooperative. Suppose FM begins 2015 with cash of $7 million. FM

Question:

Farm-to-Market (FM) is a major food cooperative. Suppose FM begins 2015 with cash of $7 million. FM estimates cash receipts during 2015 will total $103 million. Planned payments will total $97 million. To meet daily cash needs next year, FM must maintain a cash balance of at least $11 million. Prepare the organization’s for 2015.

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...