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The financial staff at Safe-Life Systems, Inc., an alarm systems manufacturer, has estimated the following sales and other expense figures for the second half of
The financial staff at Safe-Life Systems, Inc., an alarm systems manufacturer, has estimated the following sales and other expense figures for the second half of 2017 : Actual sales in June 2017 were $105,000. The firm sells 60% on cash, it collects 40% of the remainder one month after the sale. Purchases are estimated to represent 70% of the next month's sales. The firm pays 40% of its purchases in cash and the remainder during the following month. Monthly wages, rent, and lease expenses are $5,000,$3,000, and $1,500, respectively. The firm has an ending cash balance of $16,000 in June 2017. 0 Create a cash budget for July to December 2017, and determine the firm's ending cash balance in each month if the firm has a required minimum monthly cash balance of $15,000, determine the amount that would be necessary to meet the total borrowing needs for July to December 2017
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