Analyze cash budget-determine quarters of surplus-deficit

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Reference no: EM13917633

Klausenheimer, Inc. recently hired you. One of your first tasks is to analyze the cash budget for the company to determine quarters of surplus/deficit. Therefore, you need to complete the information given below (fill in the missing information. It is not necessary to show your calculations). Also, you have the following information: Payables Period = 60 days; receivables period = 45 days; Wages, Capital and Other = 20% of sales in a given quarter; Inventory purchases = 60% of next quarter’s sales; the company maintains a minimum cash balance of 100 for speculative and precautionary purposes. Comment on your findings and describe how the company should proceed. Cash Balance – Klausenheimer Inc. Q1 Q2 Q3 Q4 Projected Sales 600 630 660 720 Beginning Accounts Receivable 260 Cash Collections from quarter sales Total Cash Collected Ending Accounts Receivable Purchases 450 Beginning Accounts Payable 125 Disbursements from quarter purchases Total Cash Disbursed Ending Accounts Payable Wages, Taxes and Other Interest, Dividends 100 100 100 100 Capital Expenditures 0 200 0 0 Beginning Cash Balance 50 Cash Inflows Cash Outflows Ending Cash Balance Minimum Cash Balance 100 100 100 100 Surplus/Deficit.

Reference no: EM13917633

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