Reference no: EM131312256

Assignment

Carefully work through the analysis of the company's short term financial situation. You will see that the company will be in a negative cash situation three quarters from now. As an adviser to the company you are asked to make recommendations to management on what they actions they could take to avoid the coming financial crisis.

Your paper should:

a. List the options open to the company.

b. State your recommendations

c. Explain clearly why you are making each recommendation and,

d. Present a revised cash budget showing what it the company's cash outlook will be as a result of your recommendations.

All submissions must be in proper APA 3 pg minimum format.

Cash Balance for Masson Corporation. The Masson Corporation has a 60-day average collection period and wishes to maintain a $5 million minimum cash balance. Based on this and the information below, complete the following cash budget. What conclusions do you draw?

MASSON CORPORATION Cash Budget (in millions)
	QI	Q2	Q3	Q4
Beginning receivables	$120
Sales	90	$120	$150	$120
Cash colleclions
Ending receivables
Total cash collections
Tolal cash clistAirsernenis	80	160	180	160
Net cam inllow
Beginning cash balance	$ 5
Not cosh inflow
Ending cash balance
Minimum cash balance
Comulalive surplus {deficit)