Question
Marvel Pence, CEO of Marvels Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker.
Marvel Pence, CEO of Marvels Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2020 and 2021:
| Sales | Labor and Raw Materials | |
| May 2020 | $75,000 | $80,000 |
| June 2020 | $115,000 | $75,000 |
| July 2020 | $145,000 | $105,000 |
| August 2020 | $125,000 | $85,000 |
| September 2020 | $120,000 | $65,000 |
| October 2020 | $95,000 | $70,000 |
| November 2020 | $75,000 | $30,000 |
| December 2020 | $55,000 | 35,000 |
| January 2021 | $45,000 | N/A |
b. Prepare an estimate of the required financing (or excess funds)that is, the amount of money Marvels Renovations will need to borrow (or will have available to invest)for each month during that period.
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
