Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete Mae's pro forma balance sheet and the cash budget for the months of January, February, and March only. Identify how much additional funds

 


image

Complete Mae's pro forma balance sheet and the cash budget for the months of January, February, and March only. Identify how much additional funds Mae requires (if any). When entering dollar values, omit the dollar sign. Please save your work for partial credit. The following information is in the Excel sheet, but included below for reference: Mae is considering keeping her flower business open on Sundays next year. If she does so, she hopes for an additional 10% increase in sales but will have to pay an additional $2500 in SGA (wages). Mae would like a minimum cash balance of at least $2000. She has already completed a pro forma income statement. Complete her pro forma balance sheet. Will any additional funds be needed next year and if so, how much? Additionally, prepare a month cash budget for January, February, and March. Monthly sales and materials orders are shown. Mae would like to keep at least $2000 cash on hand at all times. Additionally, she is expecting a $200 tax payment in January and a $800 interest payment also in January. Her SGA expenses are paid at $1200 every month. She is starting January with cash of $2300 and existing financing of $1250.

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

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

10th edition

978-1337902571, 1337902578, 978-1337911054, 1337911054, 978-0324272055

More Books

Students also viewed these Finance questions

Question

3. Quantitative research relies on deductive reasoning.

Answered: 1 week ago

Question

2. Identify examples of quantitative research.

Answered: 1 week ago

Question

1. Describe quantitative research and its assumptions.

Answered: 1 week ago