Reference no: EM13736086
Lipman Auto Parts, a family-owned auto parts store, began January with $10,300 cash. Management forecasts that collections from credit customers will be $11,400 in January and $14,800 in February. The store is scheduled to receive $5,000 cash on a business note receivable in January. Projected cash payments include materials purchases ($3,000 in January and $3,600 in February), direct labor ($7,000 monthly) and manufacturing overhead ($2,500 in January and $2,800 in February). Selling and administrative expenses are ($2,700 each month). Lipman Auto Parts' bank requires a $10,000 minimum balance in the store's checking account. At the end of any month when the account balance dips below $10,000, the bank automatically extends credit to the store in multiples of $1,000. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 4% annual interest on the entire unpaid principal. The
first loan payment occurs three months after the initial loan.
Requirement
1. Prepare Lipman Auto Parts' cash budget for January and February.
2. "How much cash will Lipman Auto Parts borrow, if any, in February if collections
from customers that month total $13,800 instead of $14,800?" Lipman Auto Parts, a family-owned auto parts store, began January with $10,300
cash. Management forecasts that collections from credit customers will be $11,400 in January and $14,800 in February. The store is scheduled to receive $5,000 cash on a business note receivable in January. Projected cash payments include materials purchases ($3,000 in January and $3,600 in February), direct labor ($7,000 monthly) and manufacturing overhead ($2,500 in January and $2,800 in February). Selling and administrative expenses are ($2,700 each month). Lipman Auto Parts' bank requires a $10,000 minimum balance in the store's checking account. At the end of any month when the account balance dips below $10,000, the bank automatically extends credit to the store in multiples of $1,000. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 4% annual interest on the entire unpaid principal. The first loan payment occurs three months after the initial loan.
Requirement
1. Prepare Lipman Auto Parts' cash budget for January and February.
2. "How much cash will Lipman Auto Parts borrow, if any, in February if collections
from customers that month total $13,800 instead of $14,800?"
|
Aggregate planning on tesla cars with references
: A 5 page paper double spaced on Aggregate Planning on Tesla cars with references. Aggregate Planning to include Targeted Sales Forecast, Production Levels, Inventory Levels and Customers Backlog.
|
|
The company''s overall strategy
: The overseas divisions, where a much higher growth potential is expected, have repeatedly complained about the time it takes to have decisions made by the staff that is headquartered in the United States. On the other hand, there have been times w..
|
|
Provide a summary statement of your message strategy
: Complete the Message Strategy & Media Plan portion of the plan. Provide a summary statement of your message strategy
|
|
What are the key components of participatory democracy
: What are the key components of participatory democracy? Why are the demands of the Port Huron Statement considered on the liberal/left end of the political spectrum?
|
|
A family-owned auto parts store
: Lipman Auto Parts, a family-owned auto parts store, began January with $10,300 cash. Management forecasts that collections from credit customers will be $11,400 in January and $14,800 in February. The store is scheduled to receive $5,000 cash on a..
|
|
Factors of a group work situation
: Question 1: What factors of a group work situation affect cohesiveness?
|
|
Compute total payments to labor and capital
: Consider and economy with the following production technology: Y = 9K^1/3 L^2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. Compute the equilibrium wage and capital return. Compute total payme..
|
|
Search on current hiring practices and assessment tests
: To assist you with this assignment, complete an internet search on the current hiring practices and assessment tests employed by Home Depot.
|
|
Extensive discussion of the wealth effect
: There has been extensive discussion of the "wealth effect." The argument goes that inflated stock values were partially responsible for the strong U.S. economy of the 1990's. Explain this linkage in words and then illustrate with an Aggregate Demand/..
|