Question: What does the cash budget in problem 27 reveal about Ritewell's short-term financing requirements? Propose a short-term financing plan. Complete the following cash budget: February
What does the cash budget in problem 27 reveal about Ritewell's short-term financing requirements? Propose a short-term financing plan.
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Complete the following cash budget:
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February March April Total sales 220 200 180 Cash purchases 70 80 60 Credit purchases 40 30 40 Labour and administrative expenses 30 30 30 Taxes, interest, and dividends 10 10 10 Capital expenditures 100 February March April Sources of cash: Collections on current sales Collections on trade receivables Total sources of cash Uses of cash: Payments of trade payables Cash purchases Labour and administrative expenses Capital expenditures Taxes, interest, and dividends Total uses of cash Net cash inflow: Cash at start of period 100 + Net cash inflow = Cash at end of period + Minimum operating 100 100 100 cash balance Cumulative short-term financing required =
