Reference no: EM132482682
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
CASH FLOW SUMMARY
1. Cash balance at start of month
2. Net cash gain (loss) during month
3. Cash bal. at end of month (before financing)
4. Minimum cash balance desired
5. Surplus cash (OR) Deficit cash (Line 3 - Line 4) EXTERNAL FINANCING SUMMARY
6. External financing balance - start of month
7. New financing req'd (negative of Line 5) (if deficit!)
8. Financing repayments (if surplus!)
9. Ext financing balance - end of month
10.Cash bal. at end of mo (Line3 + Line7 + Line8)
Point 1: You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month. what will be the cash flow summary and external financing summary as noted in the Excel spreadsheet.
Question 1: Do you believe that the company needs outside financing?
Question 2: What is the minimum line of credit to request from a lender?
Question 3: Do you think you are a good candidate for the line of credit? Why?
|
Analyze the rationale for health insurance expansion
: Analyze the rationale for health insurance expansion. Include how health insurance expansion relates to the problem of adverse selection.
|
|
Prepare the bank reconciliation at July
: On July 31, Sunland Ltd. had a cash balance of $13,056 in its general ledger. Prepare the bank reconciliation at July 31
|
|
Prepare the bank reconciliation at October
: Cullumber had written and mailed out cheques with a value of $2,430 that had not yet cleared the bank account. Prepare the bank reconciliation at October
|
|
What are some methods of controlling inventory
: What are some methods of controlling inventory? Discuss controlling the various types of inventory such as finished goods, raw material and work in process.
|
|
What is the minimum line of credit to request from a lender
: 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
|
|
How much is net sales
: Question - Sales revenue total to $10,000. Sales returns and allowances are $500 and sales discounts are $1,000. How much is net sales
|
|
How much is ending inventory
: Beginning inventory is $12,000: purchases are $34,000: sales revenue are $60,000: and cost of goods sold is $31,000. How much is ending inventory
|
|
What amount of the gain or loss would Charlie recognize
: Bethany, Katherine and Charlie have formed BKC Manufacturing, a general partnership. What amount of the gain or loss would Charlie recognize
|
|
What were m and m sales revenues last year
: What were M&M's sales revenues last year? What were M&M's sales revenues last year? Last year M&M Corporation reported its net income as $920,000.
|