1 Saunders Corp. has a book net worth of $13,205. Long-term debt is $8,200. Net working capital, other than cash, is $3,205. Fixed assets are $17,380 and current liabilities are $1,630. How much cash does the company have? What is the value of the current assets? Problem 2 Consider the following financial statement information for the Schwertzec Corporation: Item Inventory Beginning Ending $ 10,583 $12,412 Accounts receivable 5,130 5,340 Accounts payable 7,205 7,630 Credit sales $97,381 Cost of goods sold 69,382 Calculate the operating and cash cycles. Problem 3 Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2012: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases April $ May June 312,000 $291,200 $350,400 118,240 141,040 166,800 43,040 10,480 10,800 62,640 10,480 10,480 74,000 135,000 0 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2012, credit sales were $196,000 and credit purchases were $134,400. Using this information, complete the following cash budget: Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance en April May June 112,000 $ $ $ $