Compute the amount the company needs to finance

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Reference no: EM132788538

Marsha Inc. has the following budgeted data for the coming year:

 

Cash balance, beginning Collections from customers Direct materials purchases Expenses:

Operating expenses

Payroll

Income taxes

Other:

Machinery purchases

5

16,700 146,700 26,700

53,400 76,700 6,000

31,700

Operating expenses include $21,700 depreciation for buildings and equipment. All purchases of materials are paid for in the period of purchase. The company requires a minimum cash balance of $25,000.

Problem 1: Compute the amount the company needs to finance or the excess cash available for Marsha to invest.

Reference no: EM132788538

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