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Cash disbursements schedule. (Total 20 points) 2 2 Marc Jacobs, a financial analyst for HMG Bicycles, has prepared the following sales and cash disbursement estimates for the period August through December of the current year. b. Prepare a monthly overview of movements of EFR for the months of September, October, November, and December, taking into account that if there is room in the net cash flow (see your answer to question a) the maximum amount of excess cash should be allocated for repayment of the EFR until fully repaid. (8 points) Use the table below to neatly fill out all items and amounts for EFR. all amounts in Euro Room for your answer to question 2b). Month August September October November December Sales 400 500 500 600 700 Cash disburse ments 300 500 700 400 500 EFR Sept Oct Nov Dec Ninety (90) percent of sales are for cash, the remaining ten (10) percent are collected one month later. All disbursements are on a cash basis. The firm wishes to maintain a minimum cash balance of 50. The beginning cash balance in September is 55. Room for explanatory notes to your calculations: a. Prepare a cash budget for the months of September, October, November, and December, taking into account any needed financing (EFR) or excess cash available. (12 points) Use the table below to neatly fill out all items and amounts for the cash budget Cash budget for HMG Bicycles Aug Sept Oct Nov Dec Cash disbursements schedule. (Total 20 points) 2 2 Marc Jacobs, a financial analyst for HMG Bicycles, has prepared the following sales and cash disbursement estimates for the period August through December of the current year. b. Prepare a monthly overview of movements of EFR for the months of September, October, November, and December, taking into account that if there is room in the net cash flow (see your answer to question a) the maximum amount of excess cash should be allocated for repayment of the EFR until fully repaid. (8 points) Use the table below to neatly fill out all items and amounts for EFR. all amounts in Euro Room for your answer to question 2b). Month August September October November December Sales 400 500 500 600 700 Cash disburse ments 300 500 700 400 500 EFR Sept Oct Nov Dec Ninety (90) percent of sales are for cash, the remaining ten (10) percent are collected one month later. All disbursements are on a cash basis. The firm wishes to maintain a minimum cash balance of 50. The beginning cash balance in September is 55. Room for explanatory notes to your calculations: a. Prepare a cash budget for the months of September, October, November, and December, taking into account any needed financing (EFR) or excess cash available. (12 points) Use the table below to neatly fill out all items and amounts for the cash budget Cash budget for HMG Bicycles Aug Sept Oct Nov Dec
