You are a financial analyst in the Bridgetown Foundationa public service agency in Chicago that provides specialized
Question:
You are a financial analyst in the Bridgetown Foundation—a public service agency in Chicago that provides specialized mental care services to the poor. The foundation’s financial resources are mainly from various state and federal grants and business or individual donations. In a recent financial audit, an independent auditor suggested the foundation explore the possibility of investing in the market as an additional revenue source. You are assigned the responsibility of analyzing the foundation’s cash flows to determine whether such a possibility exists and, if it does, how much the founda- tion should invest and what the investment strategy should be. You pull out the cash flow information for the last three years as shown in Table 8.7.
1. Create a cash budget forth next year. Use the proper forecasting techniques (from Chapter 1) and defend your reasoning for your choice of technique.
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley