Problem $24-05$

Given the following information, construct the firm$$s cash budget for the given months and answer the questions.

All sales are for credit and collections occur after $30$ days.

A $$80,000$ Treasury bill matures in March.

Monthly fixed disbursements are $$20,000.$

Variable disbursements are $40$ percent of sales and occur one month prior to sales. $($Variable cash disbursements are given for April.$)$

A tax payment of $$30,000$ is due in April.

A payment of $$40,000$ is to be received in February.

The initial cash is $$20,000.$

The minimum required cash balance is $$13,000.$Enter the disbursements values and required level of cash as positive values. Use a minus sign to enter cash outflows, shortage of cash values, negative beginning and ending cash positions, if any. Do not leave any cells blank. If the answer is zero, enter $"0".$

January February March April

Sales $ $ $180,000$ $ $230,000$ $ $180,000$

Cash sales $ $ $ $

Collections $ $ $ $

Other receipts $ $ $ $

Total cash receipts $ $ $ $

Variable disbursements $ $ $ $ $80,000$

Fixed disbursements $ $ $ $

Other disbursements $ $ $ $

Total cash disbursements $ $ $ $

Net change during the month $ $ $ $

Beginning cash $ $20,000$ $ $ $

Ending cash $ $ $ $

Required cash $ $13,000$ $ $ $

Excess $($shortage$)$ of cash $ $ $ $

At the end of March, what are the firm$$s $(1)$ accounts receivable, $(2)$ marketable securities$,$ and $(3)$ accounts payable? Assume that the variable disbursements for April are owed at the end of March. Assume that excess cash may be invested in short$-$term securities$.$ Round your answers to the nearest dollar.

Accounts receivable: $

Marketable securities: $

Accounts payable: $

What is the maximum amount that the firm may have to borrow? Round your answer to the nearest dollar. Enter your answer as a positive value.

$

If the firm used accelerated depreciation instead of straight$-$line depreciation, how would that affect the cash budget?

Any tax benefits associated with using accelerated depreciation may affect associated with tax payments, which would alter the cash budget.