Nathan Farmer, chief financial officer of Bosworth Wireless, is responsible for the companys budgeting process. Farmers staff

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Nathan Farmer, chief financial officer of Bosworth Wireless, is responsible for the company€™s budgeting process. Farmer€™s staff is preparing the Bosworth cash budget for 2013. A key input to the budgeting process is last year€™s statement of cash flows, which follows (amounts in thousands):

Nathan Farmer, chief financial officer of Bosworth Wireless, is

Requirements
1. Prepare the Bosworth Wireless cash budget for 2013. Date the budget simply €œ2013€ and denote the beginning and ending cash balances as €œbeginning€ and €œending.€ Assume the company expects 2013 to be the same as 2012, but with the following changes:
a. In 2013, the company expects a 15% increase in collections from customers and a 24% increase in purchases of inventory.
b. There will be no sales of investments in 2013.
c. Bosworth plans to issue no stock in 2013.
d. Bosworth plans to end the year with a cash balance of$3,550.

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...
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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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