What is the cumulative cash surplus at end of first quarter

Assignment Help Financial Management

Reference no: EM13729635

The Cannon Ball has projected its first quarter sales at $11,200, second quarter sales at $10,900, and third quarter sales at $13,300. The firm's cost of goods sold is equal to 71 percent of the next quarter's sales. The accounts receivable period is 30 days and the accounts payable period is 60 days. At the beginning of the first quarter, the firm has an accounts receivable balance of $2,800 and an accounts payable balance of $6,300. The firm pays $1,500 a month in cash expenses and $200 a month in taxes.

At the beginning of the first quarter, the cash balance is $530 and the short-term loan balance is zero. During the first quarter, the firm is planning on spending $2,600 for some new equipment. The firm maintains a minimum cash balance of $20.

Assume each month has 30 days. What is the cumulative cash surplus (deficit) at the end of the first quarter, prior to any short-term borrowing?

Reference no: EM13729635

Questions Cloud

Company current organizational structure : Identify the selected company's current organizational structure. Create anorganizational chart in Microsoft® PowerPoint® for the current structure of the selected company.

Compound annuity problem : (Compound annuity) What is the accumulated sum of each of the following streams of payments?

Discuss the brand development strategies marketers : Discuss the brand development strategies marketers use to develop brands. In addition, provide and justify an example of each strategy. 1. Line extensions 2. Brand extensions, 3multibrands or 4new brands.

Write an essay on latin america and the catholic church : Case Study: Latin America and the Catholic Church. Traditionally, conservatives in Latin America supported and had the support of the Catholic Church.

What is the cumulative cash surplus at end of first quarter : The Cannon Ball has projected its first quarter sales at $11,200, second quarter sales at $10,900, and third quarter sales at $13,300. The firm's cost of goods sold is equal to 71 percent of the next quarter's sales. The accounts receivable period is..

Explain what capabilities of an erp system : What capabilities of an ERP system would be useful for a company like Just Sofas. Describe the environment under which the ERP system was being implemented. Was due diligence conducted in choosing the ERP vendor.

Calculate x - y using canonical forms parametric solution : Write a Sci/Matlab function that returns the function values and the Jacobian needed for Newton's method - show graphically how the intersection point of the two equations varies with p - Jacobian needed for Newton's method.

New market segment : To be successful in the new market segment, your team must efficiently accomplish the goals set by the company. Your manager, therefore, would like you to develop a leadership approach for each team member on your team based on the theories of lea..

Loan amortization-amount of the annual payments : (Loan amortization) On December 31, Son-Nan Chen borrowed $110,000, agreeing to repay this sum in 24 equal end-of-year instalments and 18 percent interest on the decling balance. How large must the annual payments be?

User Account

All Pages