(Table in third picture is for exercise 1)

Prepare your responses to Exercises 1 and 2 on pages 314, and 315 . You can use the attached Excel worksheet for both Exercises 1 and 2 including your responses on the worksheet below the table. Please label your responses with reference to the Exercise and part. . Please also include all of your calculations in the table cells. You may add information such as company projected sales and formulas for expense allocation below or to the side of the table for reference in cells of the table. EXERCISE 1 Instructions In this exercise you will practice analyzing a cash budget for Designs by Dezinc, Inc. Part 1 If raw material purchases need to be paid at the time of purchase, how would Designs by Dezine's cash budget be affected? Use the Cash Budget worksheet to recalculate the cash budget for 20xy. Part 2 . Explain how was Designs by Dezine's cash budget was affected by the raw ma terial purchases paid at the time of purchase. How does the short-term borrowing amount change? . Year Sequence for Dates in Textbook Cases This chapter uses the following order or sequence of years for the dates in the financial statements 20xx, 20xy, and 20xx For projected years, the following sequence is used: 20y%20yy, 20yz, and so on . Nov Dec WORKSHEET DESIGNS BY DEZINE 20yx CASH BUDGET (IN S000s) Jan Feb Mar April May June Jul Aug Sep Oct 1 Beginnng Cash 6 2 Recept 10 3 Total Cash Ava 24 4 Materials 8 purchases 5 Labor 7 (non-S.G. SA 6 S. G. & A ex- 4 penses 7 Owner's salary 5 8 Interest expense 1 9 Total disbursements 25 10 Loan principal 1 paid 11 Net capital expend 2 12 Distributions or div 0 13 Total cash paid out 28 14 Net cash position (4) 15 Minimum cash 5 9 16 S-T loan required 17 Cumulative loan reg 9 EXERCISE 2 This exercise allows you to test your understanding of considerations for reviewing projections. Instructions Based on the information in the chapter on Cash Budgets and Pro Forma Statements, answer the following questions: 1. A company requests financing for its seasonal inventory. What type of forecast should be prepared 2. What is the most important part of a long-term forecast 3. What should be considered when forecasting accounts receivable and inventory? 4. What are the two possible balance sheet accounts to plug in a forecast? 5. Who should prepare pro forma financial statements? TIF Prepare your responses to Exercises 1 and 2 on pages 314, and 315 . You can use the attached Excel worksheet for both Exercises 1 and 2 including your responses on the worksheet below the table. Please label your responses with reference to the Exercise and part. . Please also include all of your calculations in the table cells. You may add information such as company projected sales and formulas for expense allocation below or to the side of the table for reference in cells of the table. EXERCISE 1 Instructions In this exercise you will practice analyzing a cash budget for Designs by Dezinc, Inc. Part 1 If raw material purchases need to be paid at the time of purchase, how would Designs by Dezine's cash budget be affected? Use the Cash Budget worksheet to recalculate the cash budget for 20xy. Part 2 . Explain how was Designs by Dezine's cash budget was affected by the raw ma terial purchases paid at the time of purchase. How does the short-term borrowing amount change? . Year Sequence for Dates in Textbook Cases This chapter uses the following order or sequence of years for the dates in the financial statements 20xx, 20xy, and 20xx For projected years, the following sequence is used: 20y%20yy, 20yz, and so on . Nov Dec WORKSHEET DESIGNS BY DEZINE 20yx CASH BUDGET (IN S000s) Jan Feb Mar April May June Jul Aug Sep Oct 1 Beginnng Cash 6 2 Recept 10 3 Total Cash Ava 24 4 Materials 8 purchases 5 Labor 7 (non-S.G. SA 6 S. G. & A ex- 4 penses 7 Owner's salary 5 8 Interest expense 1 9 Total disbursements 25 10 Loan principal 1 paid 11 Net capital expend 2 12 Distributions or div 0 13 Total cash paid out 28 14 Net cash position (4) 15 Minimum cash 5 9 16 S-T loan required 17 Cumulative loan reg 9 EXERCISE 2 This exercise allows you to test your understanding of considerations for reviewing projections. Instructions Based on the information in the chapter on Cash Budgets and Pro Forma Statements, answer the following questions: 1. A company requests financing for its seasonal inventory. What type of forecast should be prepared 2. What is the most important part of a long-term forecast 3. What should be considered when forecasting accounts receivable and inventory? 4. What are the two possible balance sheet accounts to plug in a forecast? 5. Who should prepare pro forma financial statements? TIF