Accounting

Part III) work out show necessary step 1. Based on the information given below construct a cash budget for five months period starting form Aug 20X1 till December.(10% point) MONTH AND YEAR PROJECTED SALES April 20X1 $ 105,000 May 20X1 90.000 June 20X1 100,000 July 20X1 80.000 August 20X1 70,000 September 20X1 100,000 October 20X1 120,000 November 20X1 150.000 December 20X1 150,000 January 20X2 130,000 Total payments 40,000 41,000 60,000 90,500 105,060 Additional information: a) Assume that opening cash balance as $ 0 and same balance has to be maintained through out the planning period. b) 100 percent of sales are on cash basis. 80 percent of the accounts receivables are collected in one month and remaining during the third month of sale. 2. Darara pic has a daily cash demand of $ 1000. Transaction cost is given as $180 per purchase or sale of securities. Interest on borrowing is given as 12percent per annum. Determine constant cash injections, using Baumol model 3. Eyob has the current collection period of 60 days, and average investment in receivables as $ 600,000. Calculate the amount of credit sales and receivables turnover ratio. 4. Write the main objectives of inventory management