Answer the questions as specified in the directions in the excel file.

The text book is called Fundamentals of Corporate Finance , 11 th Edition ( Author Stephen Ross; Randolph Westerfield; Bradford Jordan)

If you just type in numbers as answers, you need to show how they were calculated. If answers are determined using excel functions, that is sufficient to demonstrate how they were calculated. No response to a question will receive zero credit. If you at least attemp a solution, you may receive partial credit Changes in the Cycles [LO1] Indicate the effect that the following will have on the cash cycle and the operating cycle letter "I" to indicate an increase, the letter "D" for a decrease, and the letter "N" for no change: Impact on cash cycle Ch18-1a Ch18-1b Ch18-1c Ch18-1d Ch18-1e Ch18-1f More finished goods are produced for inventory instead of for order. A greater percentage of raw material purchases are paid for with credit. Fewer raw materials than usual are purchased. An increased number of customers begin to pay in cash instead of with credit. Cash discounts offered by suppliers are decreased; so, payments are made earlier. The terms of cash discounts offered to customers are made less favorable. Here are some important figures from the budget of a retail company for the second quarter of 2015. credit sales The company predicts that 4 percent of its credit sales will never be collected, 36 percent of its sales credit purchases will be collected in the month of the sale, and the cash disbursements: remaining 60 percent will be collected in the wages, taxes, and expenses following month. Credit purchases will be paid in the interest month following the purchase. equipment purchases Ch18-2 Complete the Cash Budget for April, May and June. (gray areas do not need to be completed) Mar 285,000 175,500 Cash Budge Mar Beginning cash balance cash receipts: cash receipts for current month cash collected for previous month sales total cash available cash disbursements: credit purchases wages, taxes, and expenses interest equipment purchases total cash disbursements ending cash balance w they were calculated. ou may receive partial credit. cycle and the operating cycle. Use the change: Impact on operating cycle April 325,900 235,600 May 355,300 215,000 June 380,500 225,600 62,150 12,560 88,750 72,400 12,560 140,000 76,590 12,560 0 Cash Budget April 185,000 May June