Do you believe that the company needs outside financing

Assignment Help Operation Management

Reference no: EM132295510

Assignment Details

Cash is King!

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. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.

Do you believe that the company needs outside financing?

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?

Please submit the Excel template below, saved under your name, with the columns and rows completed with the cash flows. Also in this template, you must include the answers to questions 2 and 3 in the assignment.

Reference no: EM132295510

Questions Cloud

In which week is utilization higher : The Clip Joint operates four barber's chairs in the student centre. In which week is utilization higher?

Criteria using the regional-community and site consideration : Identify important selection criteria Using the regional, community and site consideration.

How can you use this c in situations that occur in your life : There are many circumstances in which the principles of the 5 Cs of credit can be applied. (Conditions, Capacity, Character, Capital, Collateral).

Corporate culture and effects : “Culture is a little like dropping an Alka-Seltzer into a glass-you don't see it, but somehow it does something.”

Do you believe that the company needs outside financing : Prepare a cash flow summary and external financing summary. Do you believe that the company needs outside financing?

Is the organization operating in ethical manner : Explain your recommendations for improvements of the organization’s practices. Is the organization operating in an ethical manner?

What would be the time required to bake that quantity : What is the safety stock level currently implied by the ordering policy? What would be the time required to bake that quantity?

What is the value for the regression constant : A manager of a product sales group believes the number of sales made by an employee (Y) depends on how many years that employee

What is unique about costco channel management process : What is unique about Costco’s channel management process? What components can other retailers borrow or implement?

User Account

All Pages