A producer of wine in Italy forecasted that next January 22 the sales will be 50,000...

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A producer of wine in Italy forecasted that next January 22 the sales will be 50,000 and that these sales will increase in a 10% per month during the next six months. We assume that all sales are received the same month and all payments are done the same month. The gross profit of that wine producer is a 20%. At origin (Jan'22) that company counts with 100,000 cash On Feb'22, the company will have to invest 80,000 in a new dozing machine. On March'22, they'll have to buy a new bottling machine that costs 70,000 1- Show the cash budget for the next six-months period, starting Jan'22 2- Is there any need of funds? If so, when? 3- In case of any need of funds, how could you get rise those funds? Why? A producer of wine in Italy forecasted that next January 22 the sales will be 50,000 and that these sales will increase in a 10% per month during the next six months. We assume that all sales are received the same month and all payments are done the same month. The gross profit of that wine producer is a 20%. At origin (Jan'22) that company counts with 100,000 cash On Feb'22, the company will have to invest 80,000 in a new dozing machine. On March'22, they'll have to buy a new bottling machine that costs 70,000 1- Show the cash budget for the next six-months period, starting Jan'22 2- Is there any need of funds? If so, when? 3- In case of any need of funds, how could you get rise those funds? Why?

Answer rating: 100% (QA)

Solution 1 Cash budget for the next sixmonths period Month Sales Gross Profit Operating Expenses Net Profit Cash Flow Jan22 50000 10000 5000 5000 1000... View the full answer