Calculate and fill in the 6 blanks in the following Cash Flow Budget. You do not...
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Calculate and fill in the 6 blanks in the following Cash Flow Budget. You do not need to show your work. Enter each answer as a whole number, without decimals, without dollar sign and without thousands comma (Ex: 1000). Cash Flow Budget Assumptions: Beginning balance is $20,000 Cost of goods sold is 80% of sales Building rent is $3,000 a month Accounts payable turnover ratio is 12 Accounts receivable ratio is 6 Inventory turnover ratio is 6 A quarter of sales are paid in cash Minimum cash balance is never less than $5,000 Cash Flow Budg Projected Sales Purchases Pay Accounts Payable January Total Cash Outflow $12,000 $12,000 Pay Overhead $3,000 $15,000 February $15,000 $16,000 $14,400 $3,000 $17,400 March $18,000 $13,600 $3,000 $19,000 In the preceding question, where you filled in blanks in the proforma cash flow schedule: Q1. Explain why the firm's net cash balance is decreasing even though sales increase each month. Q2. How was the amount to be borrowed in March determined? Calculate and fill in the 6 blanks in the following Cash Flow Budget. You do not need to show your work. Enter each answer as a whole number, without decimals, without dollar sign and without thousands comma (Ex: 1000). Cash Flow Budget Assumptions: Beginning balance is $20,000 Cost of goods sold is 80% of sales Building rent is $3,000 a month Accounts payable turnover ratio is 12 Accounts receivable ratio is 6 Inventory turnover ratio is 6 A quarter of sales are paid in cash Minimum cash balance is never less than $5,000 Cash Flow Budg Projected Sales Purchases Pay Accounts Payable January Total Cash Outflow $12,000 $12,000 Pay Overhead $3,000 $15,000 February $15,000 $16,000 $14,400 $3,000 $17,400 March $18,000 $13,600 $3,000 $19,000 In the preceding question, where you filled in blanks in the proforma cash flow schedule: Q1. Explain why the firm's net cash balance is decreasing even though sales increase each month. Q2. How was the amount to be borrowed in March determined?
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Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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