Question

The Lyon Corporation is a merchandising company. Prepare a short-term cash forecast for July of Year 6 following the format of Exhibit 9A.4. Selected financial data from Lyon Corporation as of July 1 of Year 6 are reproduced below ($ thousands):
Cash, July 1, Year 6 . . . . . . . . . . . . . . . . . . . . . . . . $ 20
Accounts receivable, July 1, Year 6. . . . . . . . . . . . . 20
Forecasted sales for July. . . . . . . . . . . . . . . . . . . . . 150
Forecasted accounts receivable, July 31, Year 6. . . 21
Inventory, July 1, Year 6. . . . . . . . . . . . . . . . . . . . . . 25
Desired inventory, July 31, Year 6 . . . . . . . . . . . . . . 15
Depreciation expense for July . . . . . . . . . . . . . . . . . 4
Miscellaneous outlays for July. . . . . . . . . . . . . . . . . 11
Minimum cash balance desired . . . . . . . . . . . . . . . 30
Accounts payable, July 1, Year 6. . . . . . . . . . . . . . . 18

Additional Information:
1. Gross profit equals 20% of cost of goods sold.
2. Lyon purchases all inventory on the second day of the month and receives it the following week.
3. Lyon pays 75% of payables within the month of purchase and the balance in the following month.
4. Lyons pays all remaining expenses in cash.



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  • CreatedJanuary 22, 2015
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