AutoSave O Off ) Assignment #4(1) - Word Search devansh chandel DC X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Find Calibri 11 ~ A" A Aa Ap AaBbCc[ AaBbCcDc AaBbCcDc AaBbCc Gc Replace Paste BIUab X X A LA Heading 3 1 Normal 1 No Spac... Heading 1 Dictate Sensitivity Editor Reuse Select Files Clipboard Font Paragraph Styles Editing Voice Sensitivity Editor Reuse Files Question #1 - (10 marks) Based on the information below build a Cash Budget for J & J Sports Inc.'s potential expansion. Expected revenues for the first two years are as follows. o Sales for the 1st quarter of Year 3 are projected at $650,000. Year 1 ('000s) Year 2 ('000s Q1 22 23 Q4 Q1 22 Q3 Q4 50.00 90.00 160.00 200.00 280.00 350.00 440.00 550.00 General and administrative expenses (wages, taxes, office etc.) are estimated to be $10,000 in Year 1 - Q1 and 20% of sales thereafter. Sales salaries and commissions are estimated to be 8% of sales. Accounts receivable at the beginning of this expansion are $0. o Collection period = 30 days . Accounts payable at the beginning of the expansion are $0. o The Company quarterly purchases from suppliers = 50% of the next quarter's forecasted sales. o Suppliers are paid on average in 60 days. . The company expects capital outlays in both Year 1-Q1 of $40,000 and Year 2- Q1 of $20,000 each. The expansion will start with an initial cash loan from the parent company of $100,000. Interest on this loan is $2,500 per quarter. The company will pay back the full $100,000 in the Year 2 - Q4. . Interest on any additional short-term borrowing is expected to be 5% per quarter. The Company wishes to maintain a $100,000 minimum balance at all times to best manage its working capital and any unexpected commitments. Page 2 of 5 800 words X English (Canada) Text Predictions: On Focus - + 86% O P 27 C 0 0 0 061) ENG 8:40 PM Type here to search w 2021-08-09