Dropbox Special Access: Week 7 - Assignment: Analyze Cash Budgets, Inventory Management and Accounts Receivables - Availability Ends

Jan 19, 2020 11:59 PM

FIN-7012 V2: Corporate Finance (5948955289)

Assume the role of a manufacturing financial controller where you are making a presentation to the board of directors.

Create a PowerPoint presentation in which you include the following:

From the text, complete the cash flow statement in problem # 10 of Chapter 26 Questions and Problems.

Using a visual model, present a discussion on the drivers to the end of June cash position.

Based on the ending cash balances for April through June, describe alternative ways that the cash position could be addressed each month with either funding or with investment of excess cash.

Include a discussion on the optional ways to set up credit for customers and the benefits and costs of each option. Form an argument for what you believe to be the best approach.

Incorporate appropriate animations, transitions, and graphics as well as speaker notes for each slide. The speaker notes may be comprised of brief paragraphs or bulleted lists.

Support your presentation with at least five (5) scholarly resources.In addition to these specified resources, other appropriate scholarly resources may be included.Be sure to include citations for quotations and paraphrases with references in APA format and style where appropriate.

Length: 12-15 slides (with a separate reference slide).

Notes Length: 200-350 words for each slide.

Upload your presentation and click the Submit to Dropbox button.

Week 7 - Assignment: Analyze Cash Budgets, Inventory Management and Accounts Receivables

Due January 19 at 11:59 PM

10. Calculating the Cash Budget Here are some important figures from the budget of

March.

Cornell, Inc., for the second quarter of 2016:

Credit salesCredit purchasesCash disbursements Wages, taxes, and expenses Equipment purchases

Interest

April

The company predicts that 5 percent of its credit sales will never be collected, 35percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Using this information, complete the following cash budget:

$601,900232,850

May

In March 2016, credit sales were $332,640, and credit purchases were $247,100.

62,96418,058131,400

$627,300277,900

June

76,36418,058144,200

$693,790317,380

Beginning cash balanceCash receipts Cash collections from credit sales Total cash availableCash disbursements Purchases Wages, taxes, and expenses Equipment purchases Ending cash balance

79,67018,0580

Interest

April

Total cash disbursements

$443,500

May

June

822

PARTVIIShort-TermFinance

Creditsalesarecollectedasfollows:Theaccountsreceivablebalanceattheendofthepreviousquarterwas$122,800($87,750ofwhichwereuncollectedDecembersales).a.ComputethesalesforNovember.b.ComputethesalesforDecember.c.ComputethecashcollectionsfromsalesforeachmonthfromJanuarythrough

65percentinthemonthofthesale.20percentinthemonthafterthesale.15percentinthesecondmonthafterthesale.

10.CalculatingtheCashBudgetHerearesomeimportantfiguresfromthebudgetof

March.

Cornell,Inc.,forthesecondquarterof2016:

CreditsalesCreditpurchasesCashdisbursementsWages,taxes,andexpensesEquipmentpurchases

Interest

April

Thecompanypredictsthat5percentofitscreditsaleswillneverbecollected,35percentofitssaleswillbecollectedinthemonthofthesale,andtheremaining60percentwillbecollectedinthefollowingmonth.Creditpurchaseswillbepaidinthemonthfollowingthepurchase.Usingthisinformation,completethefollowingcashbudget:

$601,900232,850

May

InMarch2016,creditsaleswere$332,640,andcreditpurchaseswere$247,100.

62,96418,058131,400

$627,300277,900

June

76,36418,058144,200

$693,790317,380

BeginningcashbalanceCashreceiptsCashcollectionsfromcreditsalesTotalcashavailableCashdisbursementsPurchasesWages,taxes,andexpensesEquipmentpurchasesEndingcashbalance

79,67018,0580

Interest

April

Totalcashdisbursements

$443,500

May

June