Problema 2 Tema: Cash Budget (35 pts.] The actual sales and purchases for MORGAN, Inc. for September and October 2009, along with its forecast sales and purchases for the period November 2009 through April 2010, follow: YEAR 2009 2009 2009 2009 2010 2010 2010 2010 MONTH September October November December January February March April SALES $210,000 250,000 170,000 160,000 140,000 180,000 200,000 250,000 PURCHASES $120,000 150,000 140,000 100,000 80,000 110,000 100,000 90,000 The firm makes 20% of all sales for cash and collects on 40% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be $12,000 in September and April, $15,000 in January and March, and $27,000 in February. The firm pays cash for 10% of its purchases. It pays for 50% of its purchases in the following month and for 40% of its purchases 2 months later. Wages and salaries amount to 20% of the preceding month's sales. Rent $20,000 per month must be paid. Interest payments of $10,000 are due in January and April. A principal payment of $30,000 is also due in April. The firm expects to pay cash dividends of $20,000 in January and April. Taxes of $80,000 are due in April. The firm also intends to make a $25,000 cash purchase of fixed assets in December Complete a Cash Budget (3 schedules) for MORGAN, Inc. (November through April) and answer the following questions: a. If the firm has a cash balance of $22,000 at the beginning of November, determine the end-of- month cash balances for each month, November through April. b. If the firm wishes to maintain a $15,000 minimum cash balance, determine the required total financing or excess cash balance for each month, November through April. c. If the firm were requesting a line of credit to cover needed financing for the period November to April, how large would this line have to be? Explain your answer. The actual sales and purchases for MORGAN, Inc. for September and October 2009, along with its forecast sales and purchases for the period November 2009 through April 2010, follow: YEAR 2009 2009 2009 2009 2010 2010 2010 2010 MONTH September October November December January February March April TTTT SALES $210,000 250,000 170,000 160,000 140,000 180,000 200,000 250,000 PURCHASES $120,000 150,000 140,000 100,000 80,000 110,000 100,000 90,000 The firm makes 20% of all sales for cash and collects on 40% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be $12,000 in September and April, $15,000 in January and March, and $27,000 in February. The firm pays cash for 10% of its purchases. It pays for 50% of its purchases in the following month and for 40% of its purchases 2 months later. Wages and salaries amount to 20% of the preceding month's sales. Rent $20,000 per month must be paid. Interest payments of $10,000 are due in January and April. A principal payment of $30,000 is also due in April. The firm expects to pay cash dividends of $20,000 in January and April. Taxes of $80,000 are due in April. The firm also intends to make a $25,000 cash purchase of fixed assets in December Complete a Cash Budget (3 schedules) for MORGAN, Inc. (November through April) and answer the following questions: a. If the firm has a cash balance of $22,000 at the beginning of November, determine the end-of- month cash balances for each month, November through April. b. If the firm wishes to maintain a $15,000 minimum cash balance, determine the required total financing or excess cash balance for each month, November through April c. If the firm were requesting a line of credit to cover needed financing for the period November to April, how large would this line have to be? Explain your
