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9 92% 17:33 Mon 21 Dec docs.google.com MJ max asked you to create a cash budget in order to determine its borrowing needs from June

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9 92% 17:33 Mon 21 Dec docs.google.com MJ max asked you to create a cash budget in order to determine its borrowing needs from June to September period. You have gathered the information in the below table April and May sales were $195.000 and $210,000, respectively. The firm collects 45% of its sales during the month of the remaining 55% of sales. 60% is collected in the following month and 40 % is collected two months after the sale. Each month it purchases inventory equal to 50% of the current month's expected sales. The company pays for 55% of its inventory purchases in the same month and 45% in the following month. A minimum cash balance of $22.000 must be maintained each month. Its cash balance at the end of May was also $10,000 Create a cash budget for June to September 2021 and three Scenarios( best case, base case and worst case) assuming that sales revenues are 15% better than expected, exactly as expected or 15% worse than expected showing(scenario summary) their effect on the maximum cumulative borrowing to answer the below questions Moth Jone rest September October SAL Other Payments 240,000 95.600 2007200 20.000 199 200 3000 360.000 9.000 280.000 48.000 1. The total collection for the month of July will be a. $215,400 b. $220,200 c. 236,500 d. None of the above 2. The total payments for the month of September will be: a. $143,888 b. $44,888 c. $45,025 - d. None of the above 5. The ending cash balance for the month of July will be: * a. -$58,350 b. $58,350 c. $22,000 O d. None of the above 6. The maximum cumulative borrowing will be a. $0 O b. $50 C. ($50) d. None of the above 7. If the sales revenues are 15% worse than expected, then the maximum cumulative borrowing will be a $50 O b. $0 c. $16,093 O d. None of the above 3. The total disbursement for the month of August will be:* a. $85,000 O b. $99,863 c. $184,863 O d. None of the above 4. The current borrowing for the month of July will be: a $0 b. $50 O c. ($50) O d. None of the above. 5. The ending cash balance for the month of July will be: * a. -$58,350 O b. $58,350 O c. $22,000 O d. None of the above

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