You are the treasurer of Hodgkiss Suppliers Corporation (HSC), a sporting goods equipment distributor. You are...

  

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You are the treasurer of Hodgkiss Suppliers Corporation (HSC), a sporting goods equipment distributor. You are trying to determine the cash flow needs for the company for the first three months of 2006. Actual Figures2005 Estimated 2006 Oct S500 520 Nov $600 $650 Dec Sales Purchases S.G, &A Jan S700 620 Feb $750 Mar $800 580 580 630 660 100 100 100 100 100 100 Cash balanc e 10 Other information: • 50% of sales are on a cash basis, of the remaining 50% half is collected in the folowing month and the other half two months later. · All purchases are paid for in the following month. • Seling, general, and administrative (S, G., & A) costs are fixed, and are paid as incured. • Dividends payabie in February are $20. • Interest payment is due in March of $50. • Minimum cash balance required is $10. a. Estimate what if any, HSC requires in the way of additional extenal financing at the beginning of January to ensure they have enough cash to maintain a $10 cash balance through until the end of March. b. If additional extemal financing is not available, name three approaches HSC might use in order to avoid the need for external financing You are the treasurer of Hodgkiss Suppliers Corporation (HSC), a sporting goods equipment distributor. You are trying to determine the cash flow needs for the company for the first three months of 2006. Actual Figures2005 Estimated 2006 Oct S500 520 Nov $600 $650 Dec Sales Purchases S.G, &A Jan S700 620 Feb $750 Mar $800 580 580 630 660 100 100 100 100 100 100 Cash balanc e 10 Other information: • 50% of sales are on a cash basis, of the remaining 50% half is collected in the folowing month and the other half two months later. · All purchases are paid for in the following month. • Seling, general, and administrative (S, G., & A) costs are fixed, and are paid as incured. • Dividends payabie in February are $20. • Interest payment is due in March of $50. • Minimum cash balance required is $10. a. Estimate what if any, HSC requires in the way of additional extenal financing at the beginning of January to ensure they have enough cash to maintain a $10 cash balance through until the end of March. b. If additional extemal financing is not available, name three approaches HSC might use in order to avoid the need for external financing