Using the information provided, construct a monthly cash budget for October through December 2014. Based on...

 

  

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Using the information provided, construct a monthly cash budget for October through December 2014. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing? Construct a pro forma income statement for the first fiscal quarter of 2015 and a pro forma balance sheet as of December 31, 2014. What is a b your estimated external financing needed for December 31? Does the December 31, 2014, estimated external financing equal your cash surplus (deficit) for this date from your cash budget? d Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2014. Noble Selected Information and Financial Statements Sales (20 percent for cash, the rest on 30-day credit terms): 2014 Actual 2014 Projected October July 76,000 August September November December 88,000 266,000 125,000 51,000 53,000 Purchases (all on 60-day terms): 2014 Actual 2014 Projected July August September October November December 116,000 122,000 257,000 62,000 27,000 26,000 Salaries payable monthly Principal payment on debt due in December Interest due in December 20,000 25,700 9,000 Dividend payable in December Taxes payable in November Addition to accumulated depreciation in December 15,000 19,000 4,000 Cash balance on October 1, 2014 34,000 Minimum desired cash balance 15,000 Noble's annual income statement and balance sheet for September 30, 2014 appear below. Additional information about the company's accounting methods and expectations for the last three months of 2014 appear in the footnotes. Noble Annual Income Statement Fiscal Year ended September 30, 2014 ($ 000) Net sales 1,581.6 Cost of goods sold' Gross profits 1,098.0 483.6 Selling and administrative expenses? Interest expense 240.0 18.0 Depreciation Net profit before tax 3 16.0 209.6 Tax at 33% 69.2 Net profit after tax 140.4 Noble Balance Sheet September 30, 2014 ($ 000) Assets Cash 34.0 Accounts receivable 212.8 Inventory 425.0 Total current assets 671.8 Gross fixed assets 135.0 Accumulated depreciation 52.0 Net fixed assets 83.0 Total assets 754.8 Liabilities Bank loan 0.0 Accounts payable 379.0 Accrued expenses" 55.0 Current portion long-term debt Taxes payable 25.7 56.0 Total current liabilities 515.7 Long-term debt Shareholders' equity 120.0 119.1 Total liabilities and equity 754.8 '. Cost of goods sold consists entirely of items purchased during the quarter. Selling and administrative expenses consist entirely of salaries. 3 . Depreciation is straight-line at the rate of $4,000 per quarter. Accrued expenses are not expected to change in the last quarter. $25.7 due December 2014. No payments for remainder of year. Using the information provided, construct a monthly cash budget for October through December 2014. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing? Construct a pro forma income statement for the first fiscal quarter of 2015 and a pro forma balance sheet as of December 31, 2014. What is a b your estimated external financing needed for December 31? Does the December 31, 2014, estimated external financing equal your cash surplus (deficit) for this date from your cash budget? d Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2014. Noble Selected Information and Financial Statements Sales (20 percent for cash, the rest on 30-day credit terms): 2014 Actual 2014 Projected October July 76,000 August September November December 88,000 266,000 125,000 51,000 53,000 Purchases (all on 60-day terms): 2014 Actual 2014 Projected July August September October November December 116,000 122,000 257,000 62,000 27,000 26,000 Salaries payable monthly Principal payment on debt due in December Interest due in December 20,000 25,700 9,000 Dividend payable in December Taxes payable in November Addition to accumulated depreciation in December 15,000 19,000 4,000 Cash balance on October 1, 2014 34,000 Minimum desired cash balance 15,000 Noble's annual income statement and balance sheet for September 30, 2014 appear below. Additional information about the company's accounting methods and expectations for the last three months of 2014 appear in the footnotes. Noble Annual Income Statement Fiscal Year ended September 30, 2014 ($ 000) Net sales 1,581.6 Cost of goods sold' Gross profits 1,098.0 483.6 Selling and administrative expenses? Interest expense 240.0 18.0 Depreciation Net profit before tax 3 16.0 209.6 Tax at 33% 69.2 Net profit after tax 140.4 Noble Balance Sheet September 30, 2014 ($ 000) Assets Cash 34.0 Accounts receivable 212.8 Inventory 425.0 Total current assets 671.8 Gross fixed assets 135.0 Accumulated depreciation 52.0 Net fixed assets 83.0 Total assets 754.8 Liabilities Bank loan 0.0 Accounts payable 379.0 Accrued expenses" 55.0 Current portion long-term debt Taxes payable 25.7 56.0 Total current liabilities 515.7 Long-term debt Shareholders' equity 120.0 119.1 Total liabilities and equity 754.8 '. Cost of goods sold consists entirely of items purchased during the quarter. Selling and administrative expenses consist entirely of salaries. 3 . Depreciation is straight-line at the rate of $4,000 per quarter. Accrued expenses are not expected to change in the last quarter. $25.7 due December 2014. No payments for remainder of year.

Answer rating: 100% (QA)

SH Equity Sep Retained Earning in Quarter SH Equity De... View the full answer