Construct a cash budget for a typical month

Reference no: EM13302849

Nagel Corporation's budgeted monthly sales are $5,000, and they are constant from month to month. Its customers pay as follows: 40% pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include payments for wages, rent, and taxes, are 25% of sales for the month. Construct a cash budget for a typical month and calculate the average cash gain or loss during the month. Show your work.

Reference no: EM13302849

Questions Cloud

What is the maximum price per share that dunbar should offer : Eastern has 4 million shares outstanding and no debt. Eastern's current price is $16.25. What is the maximum price per share that Dunbar should offer? Show your work.

What is the firms net float : Wintoki Company writes checks averaging $15,000 a day, and it takes 5 days for these checks to clear. The firm also receives checks in the amount of $17,000 per day, and it takes 3 days for these checks to be deposited and cleared. What is the fir..

Determine what is the average stream flow in the period : A catchment has an area of 150 ha and a runo/rainfall ratio of 0.40. If due to a 10 cm rainfall over the catchment a stream flow at the catchment outlet lasts for 10 hr, what is the average stream flow in the period

Cisco example demonstrate scm : What are the advantages of Cisco's strategic alliances? Does this Cisco example demonstrate SCM? Why or why not?

Construct a cash budget for a typical month : Construct a cash budget for a typical month and calculate the average cash gain or loss during the month. Show your work.

Calculate the film of oil thickness in centimeters : A flat plate weighing 220 N slides down a 15 degree incline with a velocity of 2.5 cm/sec. A thin film of oil with a viscosity of 1.29 N.sec/m^2 separates the plate from the ramp. if the plate is 50 cm by 75 cm, calculate the film thickness in cm.

Comment on the impact for healthcare consumers : Access and analyze one End User Access and License Agreement (EUALA) for a consumer or healthcare web source. Include the agreement with your analysis as an attachment. Highlight using the yellow word processing function, the health information..

What is the cost of the loan : What is the cost of the loan, and how much would you ask for as the loan amount if you had to have $1,000,000?

Determine force required to drag a small barge in canal : Determine the force required to drag a small barge (10 ft by 30 ft) in a shallow canal (3 inches deep) in order to maintain a velocity of 5 ft/sec. Assume that the fluid is behaving in a Newtonian fashion and the water temperature is 68 degree fah..

User Account

All Pages