Determine what minimum line of credit to request from lender

Assignment Help Financial Accounting
Reference no: EM132613855

Good cash management is an essential job of the financial manager! You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September.

Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:

JAN $5,000

FEB -$30,000

MAR $20,000

APRIL -$35,000

MAY $25,000

JUNE -$10,000

JULY $25,000

AUG $25,000

SEPT -$30,000

OCT $15,000

NOV $15,000

DEC $25,000

You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month. Come up with a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.

Question 1: Do you believe that the company needs outside financing?

Question 2: What is the minimum line of credit to request from a lender?

Question 3: Do you think you are a good candidate for the line of credit? Why?

Reference no: EM132613855

Questions Cloud

What is the expected return for an equal-weighted portfolio : You are considering the following four stocks for investment, Project A, Project B, Project C and Project D.
Determine the approximate annual cost of not taking discount : Hidro Ltd is offered trade credit terms of 2/8 net 40. The firm plans to forgo the discount. Determine the approximate annual cost of not taking the discount.
Risk management and patient care : You have been charged with the development of a Crisis Management Plan for the real or hypothetical health care organization
Price of bonds the appropriate discount rate : Assuming semiannual compounding, what will the price of these bonds if the appropriate discount rate is 10.8 percent?
Determine what minimum line of credit to request from lender : Find What is the minimum line of credit to request from a lender? Do you think you are a good candidate for the line of credit? Why?
Report writing in relation to criminal investigations : Compare different types of reports that are utilized in criminal investigations. Discuss importance of report writing in relation to criminal investigations
Give a lease amortization schedule for the lessor : Give a lease amortization schedule for the lessor, Sahali Air, for the first two years (2020 and 2021). Round all amounts to the nearest dollar.
Find the monthly payments to reach that goal : Marie, an employee at McCormick, has determined that she will need $5000 per month in retirement over a 30-year period.
Specific training program that company offers : Choose a specific training program that this company offers. Explain in detail why or why not you would purchase team-training courses from this organization.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd