Reference no: EM13848319
Prepare for a cash budget: The Sharpe Corporation’s projected sales for the first eight months of 2014 are as follows:
January $90,000
February $120,000
March 135,000
April 240,000
May $300,000
June 270,000
July 225,000
August 150,000
Of Sharpe’s sales 10 percent is for cash, another 60 percent is collected in the month following the sale, and 30 percent is collected in the second month following the sale. November and December sales for 2013 were $220,000 and $175,000, respectively.
Sharpe purchases its raw material 2 months in advance of its sales equal to 60 percent of the final sales price .The supplier is paid 1 month after it makes delivery. For example, purchases for April sales are made in February and payment is made in March.
In addition, Sharpe pays $10,000 per month for rent and $20,000 each month for other expenditures. Tax prepayments of $22,500 are made each quarter, beginning in March.
The company’s cash balance at December 31, 2013 was $22,000; a minimum balance of 15,000 must be maintained at all times. Assume that any short term financing needed to maintain the cash balance is paid off in the month following the month of financing if sufficient funds are available. Interests on short term loans (12 percent) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. Thus if the month of April the firm expects to have a need for an additional $60500, these funds would be borrowed at the beginning of April with interest of $605 (ie…12*1/12*60500) owed for April being paid at the beginning of may
a. Prepare a cash budget for Sharpe covering the first 7 months of 2014.
b. Sharpe has $200,000 in notes payable due July that must be repaid or renegotiated for an extension. Will the firm have sufficient cash to repay the notes?
Please answer in excel
|
Explain roles of international financial institutions
: Explain Roles of international financial institutions (e.g. IMF, World Bank, ADB, etc.)
|
|
How many seats should protected for full fare passengers
: An aircraft has 100 seats, and there are two types of fares: full ($499) and discount ($99). While there is unlimited demand for discount fares, demand for full fares is estimated to be anywhere between 10 and 30. How many seats should protected f..
|
|
To make a phosphate buffer at ph 12.38
: To make a phosphate buffer at pH 12.38 starting with one liter of 10mM phosphoric acid (H3PO4; pKs are of 2.15, 6.82, and 12.38), you could add: a) 15 millimoles of KOH b) 20 millimoles of HCL
|
|
What is the value of v
: The angle of inclination is 450 and the top is connected to a well of diameter 40 m. If the body just manages to cross the well, what is the value of v
|
|
Prepare for cash budget-projected sales
: Of Sharpe’s sales 10 percent is for cash, another 60 percent is collected in the month following the sale, and 30 percent is collected in the second month following the sale. November and December sales for 2013 were $220,000 and $175,000, respective..
|
|
Normal curve approximation to the binomial distribution
: Solve the problem using the normal curve approximation to the binomial distribution.
|
|
B. diagram each research design and label test and treatment
: b. Diagram each research design and label tests and treatment precisely
|
|
Set up the null and alternative hypotheses
: An earlier study claims that U.S. adults spend an average of 114 minutes with their families per day. A recently taken sample of 25 adults showed that they spend an average of 109 minutes per day with their families. The sample standard deviatio..
|
|
What is the effective rate of interest
: A pawnshop will lend $6,250 for 45 days at a cost of $30 interest. What is the effective rate of interest?
|