Conroy Company's financial managers are meeting with the company's bank to renew their line of credit and discuss their investment needs. They have prepared the company's operating cash budget for the last six months of the year: The following budget assumptions were used to construct the budget: - Conroy's total sales for each month were first calculated in the sales budget and are reflected on the first line of the cash budget. - Conroy's sales are made on credit with terms of 2/10, net 30 . Conroy's experience is that 25% is collected from customers who take advantage of the discount, 65% is collected in the second month, and the last 10% is coliected in the third month after the sale. The budget assumes that there are no bad dehts. - The cost of materials averages 55% of Conroy's finished product. The purchases are generally made one month in advance of the sale, and Conroy pays its supplers in 30 days. Accordingly, if July sales are forecasted at $110.00 million, then purchases during June would be $60.50 million ( $110.00 milion 55% ), and this amount would be paid in July. - Other cash expenses include wages and salaries at 12% of monthiy sales, monthly rent of $40.00 million, and other expenses equal to 5% of monthly sales. Estimated tax payments of $195.00 million and $206.00 milion are required to be piild on July 15 and October 15, respectively. In addition, a $1,000.00 million payment for a new plant must be made in September. - Assume that Conroy's targeted cash balance is $168.82 million, and the estimated cash on hand on July 1 is $168.82 milion. Use the precoding information to fill in the missing amounts in the following cash budget for the period of July tst to December 31 tst Conroy Company Credit purchases two months previously. Cash disbursements Payments for credit $55.00$55.55$56.65$$59.40$60.50 puechases Wages and salaries Rent Other expenses 5.005.05 Taxes 195.00 Payment for plant 1,000,00 construction Total cash $307.00$112.72 51,114,16 $117.76$119.20 disbursements Net cash flow (Receipts - $209.30513.17$1,013.275218.82512.75=511.55 disbursements) Beginning cash 168.82$40.49$53.65$1,056.92$1,285.74$1,298.49 balance Ending cash balance 540,48 453.65 51,285.7451,298.4951,310.04 Use the information provided in the budget to complete the followng sentences Conroy Company will be able to invest in short-term marketable secunties in some months and will need to borrow to cover cash requirements in others. In the last sox months of the year, Conroy will to end the year with a cash of and a cash of . Conroy Company will want a credit line of at least to cover the month with the greatest thortfall, and the financial managers can tell the bank to expect that they will be able to invest up to in short-term marketable secunties: Conroy Company's financial managers are meeting with the company's bank to renew their line of credit and discuss their investment needs. They have prepared the company's operating cash budget for the last six months of the year: The following budget assumptions were used to construct the budget: - Conroy's total sales for each month were first calculated in the sales budget and are reflected on the first line of the cash budget. - Conroy's sales are made on credit with terms of 2/10, net 30 . Conroy's experience is that 25% is collected from customers who take advantage of the discount, 65% is collected in the second month, and the last 10% is coliected in the third month after the sale. The budget assumes that there are no bad dehts. - The cost of materials averages 55% of Conroy's finished product. The purchases are generally made one month in advance of the sale, and Conroy pays its supplers in 30 days. Accordingly, if July sales are forecasted at $110.00 million, then purchases during June would be $60.50 million ( $110.00 milion 55% ), and this amount would be paid in July. - Other cash expenses include wages and salaries at 12% of monthiy sales, monthly rent of $40.00 million, and other expenses equal to 5% of monthly sales. Estimated tax payments of $195.00 million and $206.00 milion are required to be piild on July 15 and October 15, respectively. In addition, a $1,000.00 million payment for a new plant must be made in September. - Assume that Conroy's targeted cash balance is $168.82 million, and the estimated cash on hand on July 1 is $168.82 milion. Use the precoding information to fill in the missing amounts in the following cash budget for the period of July tst to December 31 tst Conroy Company Credit purchases two months previously. Cash disbursements Payments for credit $55.00$55.55$56.65$$59.40$60.50 puechases Wages and salaries Rent Other expenses 5.005.05 Taxes 195.00 Payment for plant 1,000,00 construction Total cash $307.00$112.72 51,114,16 $117.76$119.20 disbursements Net cash flow (Receipts - $209.30513.17$1,013.275218.82512.75=511.55 disbursements) Beginning cash 168.82$40.49$53.65$1,056.92$1,285.74$1,298.49 balance Ending cash balance 540,48 453.65 51,285.7451,298.4951,310.04 Use the information provided in the budget to complete the followng sentences Conroy Company will be able to invest in short-term marketable secunties in some months and will need to borrow to cover cash requirements in others. In the last sox months of the year, Conroy will to end the year with a cash of and a cash of . Conroy Company will want a credit line of at least to cover the month with the greatest thortfall, and the financial managers can tell the bank to expect that they will be able to invest up to in short-term marketable secunties