ABC Mechanical Inc is a nationwide distribution network and electronic equipment company. The financial manager of the company will meet with the bank where the company works to discuss the financial information for the next 4 months. The sales amount for the last month and the sales forecasts for the next 4 months are given below:
May 150.000 TL June 200.000 TL
July 50.000 TL
August 100.000 TL
September 250.000 TL
The company collects 50% of its sales in cash and 50% with a maturity of 1 month.
Purchases are 60% of sales. ABC makes the relevant purchase 1 month before the sales; but the payment is made 1 month after the purchase date.
Labor costs are 10% of sales and are paid in the relevant month.
General Administrative expenses are 20% of the sales and are paid in the relevant month.
Income tax of 10.000 TL will be paid in August.
The dividend payment of 50.000 TL will be made in June.
The cash balance on June 1 is 80.000 TL and the cash balance is required to be a minimum of 60.000 TL at the end of each month.
What is the sum of the cash inflows in June, July, August and September, respectively (TL)?
What is the cash deficit/surplus at the end of June? (Please consider the Company's minimum cash policy.)
What is the sum of the cash outflows in June, July, August and September, respectively (TL)?
125.000, 100.000, 150.000, 150.000
175.000, 125.000, 75.000, 175.000
150.000, 125.000, 100.000, 175.000
100.000, 75.000, 120.000, 145.000
175.000, 100.000, 75.000, 150.000