Question 1: Cash synchronization from the Cash Budget

Month Sales $M	J	F	M	A	M	J	J	A	S
		20.5M	20.0	22.0	18.0	19.5	20.0	22.0	25.0
									$
								$

ASSUMPTIONS:

10% in the month of sale

40% one month after the sale

20% 2 months after the sale

Remainder two months after the sale

Required:

1.. From the populated table above, The Cash receipts in September is: $ _______

2 From the table above outstanding account receivables in August is: $ ______

3.. Would you give a loan of $15.0 M in August, assuming a collection risk of 15%?

Explain here:

Question 2. The invoice for the above business came in with payment condition of 3/15 net 60

What % could the business borrow at so that they would be indifferent between the discount and borrowing option to take the discount?

Answer ______ %

Fully explain below your % above by using numbers and words to convince you reader of your

decision as done in class:

. ..