Complete the cash flow spreadsheet, Financial Accounting

Assignment Help:

This lab assignment will correspond to developing a cash flow budget with an operating loan. There is on lab exercise listed below. Additionally, there are two assignment questions. Please complete the lab exercise in Excel. The assignment questions can be completed by hand or in Word. You make work with one other individual (no more than two people per team). Hand in one hard copy of Lab 4 per team to the instructor AND upload your Excel file to Angel by the due date.

1. Consider you are putting together a quarterly cash flow budget at the start of January for the up-coming year (called a projected cash flow). On the following page is an incomplete cash flow budget.  With the following information, complete the cash flow budget by developing an Excel spreadsheet.  Use the Lab 4 Excel file provided on the Angel web site.

  Use the input data worksheet in your formula for those data items given in the input data worksheet.

  The year starts with a $0 operating loan balance.
 
  The operating loan is a revolving line of credit with a $300,000 maximum loan balance.

  The operating loan has a 9% annual interest rate.
 
  You want a minimum of $25,000 cash available at the beginning of each quarter.
 
At the end of each quarter, any cash available over and above $25,000 is used to pay off the outstanding operating loan. Whenever funds are used to pay interest and principal, all accrued interest is paid first with the remaining funds applied to the outstanding principal balance.
 
In calculating interest owed on the operating loan, assume the amount borrowed in each quarter was borrowed on the first day of the first month in the quarter.  Also assume that any principal and interest payment made on the operating loan is made on the last day of the last month in the quarter that the repayment is made.

2. Complete the Cash Flow spreadsheet using appropriate formulas.


Related Discussions:- Complete the cash flow spreadsheet

Limitations of the five year period of analysis, Q. Limitations of the five...

Q. Limitations of the five year period of analysis? A number of restrictions to the analysis potentially arise - The approach doesn't take account of future benefits/costs a

What is its wacc, You were hired as a consultant to Giambono Company, whose...

You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost

What is asset acquisition, Asset Acquisition An alternate way of condu...

Asset Acquisition An alternate way of conducting a buyout by purchasing few assets an industry may have inspite of purchasing that organizations stock.

Which of the following is not a measurement issue in a/c, Which of the foll...

Which of the following is not a measurement issue in accouting a. when to record a business transaction b. how to classify the items of a businesss transaction c. when to classify

Investments under the trustee act-trust laws and accounts, Investments unde...

Investments under the Trustee Act The act defines the categories of investment as follows:         1. Fixed interest securities are: Securities which under their te

What is the present value of these future savings?, a) A company has 7000 o...

a) A company has 7000 obsolete toys carried in inventory at a manufacturing cost of $6 per unit. If the toys are reworked for $2 per unit, they could be sold for $3 per unit. If th

Determine the range and quality of information, Determine the Range and qua...

Determine the Range and quality of information Financial accounting reports concentrate on information which can be quantified in monetary terms. Management accounting addition

Weighing up the costs and benefits, Weighing up the costs and benefits ...

Weighing up the costs and benefits You may feel that, when considering a piece of accounting information, provided four main qualities identified are present and it's material

Which inventory methods should used, 1) Which inventory methods are used by...

1) Which inventory methods are used by Lowe's? (Mark all that apply.) a. Weighted-average b. FIFO c. LIFO d. Dollar-value LIFO e. Retail LIFO f. Retail Dollar-value LIFO g. If mult

Qualitative characteristics , Since 1968, Dracula Limited has traded in Don...

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd