develop a spreadsheet with a cash budget with lagging collections? Determine the net cash flows for the year. forecast the cumulative dollar amount of the external financing required for the year MCI has estimated the following sales forecast over the next 12 months they close in the winter. Jan, $0.00 February, $0.00 March, $275,000 Apr,$275,000 May,$312,000 Jun,$417,000 July, $714,000 August, $611,000 September $827,000 October, $500,000 November, $116,000 December, $0.00 the company also gathered the following collection estimates regarding the forecast sales payment collection within the month of sale = 20% payment collection the month following sales = 60% payment collection the second month following sales = 20%

payments for raw materials and labor costs are paid the month after the purchase and are estimated as follows: March $220,000 April, $240,000 May, $225,000 Jun, $287,000 July, $350,000 August, $415,000 September $242,000 Oct, $214,000 November $222,000 additional information administrative salaries will approximately amount to $30,000 a month lease payments are around $10,000 a month. A one time New plant investment for $23,000 is expected to incur and be paid in June. income tax payments estimated to be around $50,000 will be due in both June and September. miscellaneous costs are estimated to be around $5,000 a month. cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times. based on your cash budget findings will the company need outside financing. when is the line of credit the highest for MCI will need. if you were a bank manager would you want MCI as your client why or why not

Assignment Details Good cash management is impossible without an analysis of the cash collections and cash disbursements of a company, Cash budgets provide a devices for monitoring cash and determining financing requirements Cash budgets are essential to all small businesses. In this assignment, you are required to do the following: Develop a spreadsheet with a cash budget with lagging collections Determine the net cash flows for the year Forecast the cumulative dollar amount of the external financing required for the year You are also required to prepare a 3.page analysis of the results of your cash budget. Middletown Construction, Inc. has estimated the following sales forecast over the next 12 months (they close in the winter): SO 50 5275,000 January February March April May June $275,000 5312.000 5417,000 July 5714,000 August 5611,000 September $827,000 October $500,000 November 5116,000 December The company also gathered the following collection estimates regarding the forecast sales: Payment collection within the month of sale = 20 Payment collection the month following sales 50% Payment Collection the second month following sales 20% Payments for raw materials and labor costs are paid the month after the purchase and are estimated as follows: March $220,000 $240.000 o IT Assignment Details Lead cash management is impossible without an analysis of the cash collections and cash disbursements of a compary. Cash budgets provide a gauge for determining credit, disbursement, and discount policies. Cash budgets are eftec devices for monitoring cash and determining financing requirements. cam budgets are essential to all small businesses. In this assignment, you are required to do the following: Develop a spreadsheet with a cash budget with lagging collections Determine the net cash flows for the year Forecast the cumulative dollar amount of the external financing required for the year You are also required to prepare a 3-page analysis of the results of your cash budget. Metown Construction, Inc. has estimated the following sales forecast over the next 12 months (they close in the winter: 10 50 275,000 $275,000 $312.000 5417,000 $714,000 5511,000 ember 5827,000 $500,000 5116.000 way to gathered the following collection estimates regarding the forecast sales: .conection within the month of sale = 209 .llection the month following sales = 60% on the second month following sales 20%