2. Given the following cash budget, help the firm plan for its operational cash needs by...

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2. Given the following cash budget, help the firm plan for its operational cash needs by answering the questions. October November December Cash Receipts $ 37,500 15,000 $ 52.500 $ 33,750 12.500 $ 46,250 $ 39,000 11,250 $ 50,250 Cash sales 1-month lag sales Total Cash Receipts Cash Disbursements $ 36,400 9,000 31,500 $ 35,000 12.000 Purchases 10,000 Wages 1,500 1,500 1,500 Rent 2,500 2,250 2,600 Sales Tax Income Tax Utilities Total Cash Disbursements 12,000 300 300 45,550 300 $ 61,800 $ (11,550) 3,150 $ (8,400) $ 51.300 $ 1,200 700 Net Cash 1,250 2,450 Beginning Balance Ending Balance Minimum Balance $ 2 450 3,150 1.000 1,000 1,000 $ 1.450 2,150 $ (9.400) Excess Cash or Required Financing a In which months does the firm need to plan to obtain additional financing? Why? (4 points) b. What are two ways in which the firm can plan for the months where financing is needed? (6 points) %24 2. Given the following cash budget, help the firm plan for its operational cash needs by answering the questions. October November December Cash Receipts $ 37,500 15,000 $ 52.500 $ 33,750 12.500 $ 46,250 $ 39,000 11,250 $ 50,250 Cash sales 1-month lag sales Total Cash Receipts Cash Disbursements $ 36,400 9,000 31,500 $ 35,000 12.000 Purchases 10,000 Wages 1,500 1,500 1,500 Rent 2,500 2,250 2,600 Sales Tax Income Tax Utilities Total Cash Disbursements 12,000 300 300 45,550 300 $ 61,800 $ (11,550) 3,150 $ (8,400) $ 51.300 $ 1,200 700 Net Cash 1,250 2,450 Beginning Balance Ending Balance Minimum Balance $ 2 450 3,150 1.000 1,000 1,000 $ 1.450 2,150 $ (9.400) Excess Cash or Required Financing a In which months does the firm need to plan to obtain additional financing? Why? (4 points) b. What are two ways in which the firm can plan for the months where financing is needed? (6 points) %24

Answer rating: 100% (QA)

Solution Answer A Financing is needed for December month Because end... View the full answer