Reference no: EM13962531
Cash flow exercise
Joseph Pharmacy had sales of $25,000 in December and $30,000 in January. The company expects sales of $20,000 in February and $40,000 in both March and April, and $30,000 in May. The company has no other source of cash inflows. Half of the sales are paid for with cash. Twenty-five percent are paid for in each of the two months following the sale.
Joseph Pharmacy has the following expenses: (show all of your work)
• Monthly rent of $1,500
• Wages of $5,000 each month
• Purchases
o 50% of next month's sales
o Cash Outlay
- 20% in month purchased
- 80% in following month
From the information provided:
1. Calculate the projected Cash Receipts for the three months of February, March, and April (Tables have been set up for you)
|
Sales forecast
|
December
|
January
|
February
|
March
|
April
|
|
Cash Sales
|
|
|
|
|
|
|
Collection of AR:
Lagged 1 Month
Lagged 2 Months
|
|
|
|
|
|
|
Other Cash Receipts
|
|
|
|
|
|
|
Total Cash Receipts
|
|
|
|
|
|
2. Calculate the projected Cash Disbursements for the same months
A Schedule of Projected Cash Disbursements for Joseph Pharmacy
|
Sales
|
December
|
January
|
February
|
March
|
April
|
|
Purchases (50% of last month's sales)
|
|
|
|
|
|
|
Rent payments
|
|
|
|
|
|
|
Wages/Salaries
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
3. Indicate what the total cash balance would be at the end of these three months if the cash balance at the beginning of February was $1,500.
|
February Cash balance
|
|
|
|
|
|
|
Total Cash Receipts
|
December
|
January
|
February
|
March
|
April
|
|
Cash Disbursements
|
|
|
|
|
|
|
Balance
|
|
|
|
|
|
|
Balance from Feb - April
|
|
|
|
|
|
4. Define cash inflows and cash outflows
5. If I have a budget where expected gross receipts are what is obtained in #1 and my expected cash disbursements are what is obtained in #2. What can you tell me about the cash balance (obtained in #3) if you were doing a variance analysis?
6. What is a cash budget, a flexible budget, CAPEX, and OPEX?
7. How often do you use some form of budgeting? Why?
8. If the business world is allowed to explain away their variances to budget, why is budgeting so important?
|
Mechanical waves need a medium to propagate.
: Electromagnetic waves (which transfer electromagnetic energy) do not need any medium to propagate. EM waves travel forward due to vibrations of the electric field and magnetic field vectors. Example : Light waves are EM waves.
|
|
Sensitivity levels in sexual harassment cases
: A worker files a sexual harassment claim against her supervisor. If successful, To prove sexual harassment, the plaintiff, With regard to victims' sensitivity levels in sexual harassment cases, Studly was interested in an intimate relationship with h..
|
|
How much heat is released
: 2 P(s) + 3 Cl2(g) ---> 2 PCl3(g) deltaH = -600 kJ How much heat is released when 45.2 g of PCl3 are produced?
|
|
Problem regarding the critical path analysis
: The planning of projects can often be represented by a network where the arcs of the network represent activities occupying a duration of time and nodes represent the termination and beginning of activities. Two questions can be asked
|
|
How often do you use some form of budgeting and why
: How often do you use some form of budgeting? Why? If the business world is allowed to explain away their variances to budget, why is budgeting so important?
|
|
Please find the molar volume of a gas
: Please find the molar volume of a gas at 98°C and 2.5 atmospheres pressure.
|
|
Find the average monthly cost of the inventory
: A shop that makes candles offers a scented candle, which has a monthly demand of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20 days a month. find the optimal production order quantity, The average monthly cost..
|
|
Minimize the sum of absolute deviation
: Fit the best straight line y = bx + a to this set of data points. The objective is to minimize the sum of absolute deviation of each observed value of y from the value predicted by the linear relationship. Write this as a linear programming model
|
|
Describe the relationship-run the simple linear regression
: Plot the data with the 2000 tuition on the x-axis and 2008 tuition on the y-axis. Describe the relationship. Are there any outliers or unusual values? Does a linear relationship between the tuition in 2000 and 2008 seem reasonable? Run the simple li..
|