Globals suppliers are upset that Global takes two months to pay their accounts payable; they demand that

Question:

Global’s suppliers are upset that Global takes two months to pay their accounts payable; they demand that in the following year Global pay its bills within 30 days, or one month after the purchase.

a. Using this new information, update Global’s cash outflow forecast shown in Table 15.5.

b. Using the cash inflows given in Table 15.4, construct a revised cash budget for Global.

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...