please provide a cash budget for the years 20x1-20x3 for the cafw
month and are paid monthly each each in July and December. Depreciation expense is $3,000 per month payable in August (20,000 shares are outstanding). except for insurance, depreciation, and property taxes, are represents 40 petani year. The property taxes of $20,000 for the year are paid in two installments of a Insurance premiums of $3,000 are paid quarterly in January, April, July, and Out The Board of Directors is expected to declare a dividend per share of $25 In September, the firm plans to acquire fixed assets using cash totaling $20,000 firm is to borrow cash to maintain the desired cash balances, it must do so in increme 30 days. (Assume that the funds borrowed, if any, are paid back in the following to of $1,000. The interest rate is 12 percent and principal and interest must be paid back Assume that a year has 365 days when calculating interest on short-term loans." Required: and disbursements approach. Prepare a monthly cash budget for Ziggy's Diner for July-September using the cash recipes preparing a -0- Problem 22 Stacey Williams, owner of the Williams Caf, has requested your assistance in three-year cash budget. She provides the following financial data: 20X1 20X2 20x3 Budgeted pretax income $ 20,000) $ 150,000 Depreciation expense 30,000 30,000 30,000 Mortgage payments: Interest expense 20,000 19,500 19,000 Principal reduction 10,000 10,500 11,000 Expected changes in current accounts: Accounts receivable 5,000 5,000 (5,000) Inventory 2,000 (3,000) 2,000 Accounts payable 5,000 (6,000) Other planned activity: Sale of capital stock 100,000 -0- -0- Purchase of property 20,000 50,000 Additional Information: 7,000 -0- 1. Cash at the beginning of 20X1 was $30,000. 2. The average tax rate of the Williams Caf is 25 percent. Cash Management 583 Bequal to 30 percent of net income. Assume dividends are paid out during profitable years. The amount of dividends paid perating profits prior to calculating income taxes. Required: ) Prepare a cash budget for the years 20X1-20x3 for the Williams Caf using the adjusted net time approach Problem 23 The Lakeland Diner has provided the information below for the preparation of its cash budget Beginning cash on July 1 is $5,000. The owner of the diner would like to maintain a minimum cash balance at the end of each month equal to one week's (seven days) isbursements for the current month, not including disbursements related to working apital loans. (Assume that disbursements are made evenly throughout a month.) Monthly total sales are as follows: DO $ 50,000 September (estimated) $160,000 110,000 October (estimated) 150,000 130,000 November (estimated) 130,000 150,000 December (estimated) 120,000 170,000 January (estimated) 100,000 180,000 February (estimated) 90,000 Telesales are 30 percent cash, 50 percent credit card, and 20 percent regular credit. TH March April May June July (estimated) August (estimated) tinet accepts only MasterCard, Cash is received from MasterCard for each day's sales, ar te brokerage charge is 3 percent. Regular credit sales are collected as follows: Month of sale Month after sale Second month after sale Third month after sale Bad dobi 10% 70% 10% 9%
