Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As a financial manager. You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September.

image text in transcribed
image text in transcribed
As a financial manager. You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following: JAN $5,000 FEB -$30,000 MAR $20,000 APRIL -$35,000 MAY $25,000 JUNE -$10,000 JULY $25,000 AUG $25,000 SEPT -$30,000 OCT $15,000 NOV $15,000 DEC $25,000 You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month. 1-Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission. 2-If the company needs outside financing, what is the minimum line of credit to request from a lender? 3-Do you think you are a good candidate for the line of credit? Why? Please submit the Excel template below, saved under your name, with the columns and rows completed with the cash flows. Also in this template, you must include the answers to questions 2 and 3 in the assignment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Authors: Jeff Madura

12th edition

9781337515535, 1337099740, 1337515531, 978-1337099745

More Books

Students also viewed these Finance questions

Question

Describe ERP and how it can create efficiency within a business

Answered: 1 week ago