Question
Best Buy wants to prepare a cash budget for months of August through October. Sales were 60000 in June and 60000 in July. Sales have
Best Buy wants to prepare a cash budget for months of August through October.
Sales were 60000 in June and 60000 in July. Sales have been forecasted to be 95000, 102000, 63000, for months of August, September, October, respectively. In the past, 20 percent of sales were on cash basis, and the collection were 50 percent after one month and 30 percent after two months . 600 dollar of dividends from investments are expected to be received received in September.
Purchases are 60 percent of sales, 15 percent of which are paid in cash, and he rest is paid one month after purchase.
The monthly rent is 4000 dollars.
Taxes are $6500 payable in August.
A new equipment will be purchased in October for $2300.
$1000 loan payments are paid every month.
Wages and salaries are $1000 plus 5 percent of sales in each month.
July's ending cash balance is $3000.
Best Buy would like to maintain a minimum cash balance of $10000.
What is the total cash receipts in August?
Answer for part 1
What is the total cash receipts in September?
Answer for part 2
What is the total cash receipts in October?
Answer for part 3
What is the total cash disbursements in August?
Answer for part 4
What is the total cash disbursements in September?
Answer for part 5
What is the total cash disbursements in October?
Answer for part 6
What is the net cash flow in August?
Answer for part 7
What is the net cash flow in September?
Answer for part 8
What is the net cash flow in October?
Answer for part 9
What is the ending cash balance in August?
Answer for part 10
What is the ending cash balance in September?
Answer for part 11
What is the ending cash balance in October?
Answer for part 12
What is the cash balance to be invested in Marketable securities or to be financed in August?
Answer for part 13
What is the cash balance to be invested in Marketable securities or to be financed in September?
Answer for part 14
What is the cash balance to be invested in Marketable securities or to be financed in October?
Answer for part 15
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The Economic Indicator Handbook How To Evaluate Economic Trends To Maximize Profits And Minimize Losses
Authors: Richard Yamarone
1st Edition
1118204662, 9781118204665
