Herman Knorr, chief financial officer of Dallas Wireless, is responsible for the company’s budgeting process. Knorr’s staff is preparing the Dallas Wireless cash budget for 2015. A key input to the budgeting process is last year’s statement of cash flows, which follows (amounts in thousands)

1. Prepare the Dallas Wireless cash budget for 2015. Date the budget simply “2015,” and denote the beginning and ending cash balances as “beginning” and “ending.” Assume the company expects 2015 to be the same as 2014, but with the following changes:
a. In 2015, the company expects a 25% increase in collections from customers and a 26% increase in purchases of inventory.
b. There will be no sales of investments in 2015.
c. Dallas Wireless plans to issue no stock in 2015.
d. Dallas Wireless plans to end the year with a cash balance of$4,675.

  • CreatedJuly 25, 2014
  • Files Included
Post your question