Reference no: EM13918188
ACCT504 Case Study 3
(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company's budgeting process. Farmer's staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year's statement of cash flows, which follows (amounts in thousands):
Wang Appliance Store
Statement of Cash Flows
2013
(in thousands)
Cash Flows from Operating Activities
Collections from customers $51,000
Interest Received 500
Purchase of inventory (36,000)
Operating expenses (10,200)
Net cash provided by operating activities 5,300
Cash Flows from Investing Activities
Purchase of equipment (3,500)
Purchase of investments (500)
Sale of investments 1,000
Net cash used for investing activities (3,000 )
Cash Flows from Financing Activities
Payment of long term debt (400)
Issuance of Stock 2,000
Payment of cash dividends (500)
Net cash provided by financing activities 1,000
Cash
Increase (decrease) in Cash 3,300
Cash, beginning of year 2,900
Cash, end of year 5,900
? Requirements
• 1. Prepare the Wang cash budget for 2014. Date the budget simply "2014" and denote the beginning and ending cash balances as "beginning" and "ending." Assume the company expects 2014 to be the same as 2013, but with the following changes:
o a. In 2014, the company expects a 20% increase in collections from customers and a 30% increase in purchases of inventory.
o b. There will be no sales of investments in 2014.
o c. Wang does not plan to issue stock in 2014.
o d. Wang plans to end the year with a cash balance of $5,550.
|
Pertinent demographic-social, political-economic factors
: Determine the pertinent demographic, social, political, and economic factors about your chosen country.
|
|
Concepts learned to real-world financial reporting scenario
: In this course you will have the opportunity to apply the concepts learned to a real-world financial reporting scenario as part of your Term Project. For this project you will be creating a report about an assigned company. You will research the c..
|
|
Preventing the type of attack
: Deccan Herald titled Hackers holding your PC to ransom Propose two (2) methods that computer users could use to prevent this type of attack.
|
|
Describe the role the compensation design will play
: Describe the role the compensation design will play in motivating the new sale representative. Identify and describe at least three sales objectives for the new sales representative.
|
|
Construct and use a cash budget
: Prepare the Wang cash budget for 2014. Date the budget simply "2014" and denote the beginning and ending cash balances as "beginning" and "ending." Assume the company expects 2014 to be the same as 2013, but with the following changes:
|
|
Income measured under variable costing
: The founders of Samanta Shoes use variable costing in their business decisions. If Samanta Shoes used absorption costing, would you expect the company's income to be more than, less than, or about the same as its income measured under variable co..
|
|
Dimsdale sports has a working arrangement
: Dimsdale Sports has a working arrangement with its bank to obtain additional loans as needed.
|
|
How would the organization identify the competition
: How would the organization identify the competition? How would it effect the non-profit organization? What would be ways to compete with the competition?
|
|
Profits and losses in the ratio
: A partnership agreement on May 1, 2015. Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances.
|