Willie Wong has recently purchased a microcomputer system and has decided to set up a cash...
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Willie Wong has recently purchased a microcomputer system and has decided to set up a cash flow spreadsheet which will allow him to analyse his personal finances over the next six months (January-June). His only source of income is his annual net salary of £18,000. After examining his bank statements for the past year, Willie has worked out average expenses. These include monthly payments for rent (£250), food (£150), car expenses (£90), and sundries (£100) as well as two monthly bills for electricity (£100) and telephone calls (£70). Because of his recent microcomputer purchase, Willie has estimated that he will have a bank overdraft of £2000 on 1 January. Willie Wong intends to take a holiday in July and he would like to know how much money will be available. Set up a cash flow model showing net cash flows and balances at the end of each month. How much will Willie have for his holiday? Willie Wong has recently purchased a microcomputer system and has decided to set up a cash flow spreadsheet which will allow him to analyse his personal finances over the next six months (January-June). His only source of income is his annual net salary of £18,000. After examining his bank statements for the past year, Willie has worked out average expenses. These include monthly payments for rent (£250), food (£150), car expenses (£90), and sundries (£100) as well as two monthly bills for electricity (£100) and telephone calls (£70). Because of his recent microcomputer purchase, Willie has estimated that he will have a bank overdraft of £2000 on 1 January. Willie Wong intends to take a holiday in July and he would like to know how much money will be available. Set up a cash flow model showing net cash flows and balances at the end of each month. How much will Willie have for his holiday?
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Answer rating: 100% (QA)
ANSWER I To set up a cash flow model we need to list down all the cash inflows and outflows for each ... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
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