Question
11. Short-term financial planning for the PDC Company was described earlier in this chapter. Refer to the PDC Companys projected monthly operating schedules in Table
11. Short-term financial planning for the PDC Company was described earlier in this chapter. Refer to the PDC Companys projected monthly operating schedules in Table 6.2. PDCs monthly sales for the remainder of 2017 are expected to be: September $80,000 October $100,000 November $130,000 December $160,000
A. Prepare PDCs sales schedule, purchases schedule, and wages schedule for each of the last four months of 2017.
B. Prepare cash budgets for each of the last four months of 2017 for the PDC Company and describe how the forecast affects the end-of-month cash balances.
C. Prepare PDCs projected monthly income statements for the AugustDecember period.
D. Prepare PDCs projected monthly balance sheets for the AugustDecember period.
E. Prepare PDCs projected monthly statements of cash flows for the AugustDecember period.
F. Compare your balance sheet at the end of December with the balance sheet in Table 6.1 and apply the balance sheet method to determine cash flows over the MarchDecember period.
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