Where does cumulative amount come from?

ved-rugearehed Pesults vary due to constant updating of the related web sites. EXERCISES/PROBLEMS AND ANSWERS 1. Short-Term Financial Planningl The Itsar Products Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. Itsar Products has beginning cash on hand of $10,000 and wants to maintain this minimum cash level throughout the next year. Cash Receipts $100,000 Cash Month January February$90,000 $80,000 $100,000 $120,000 $160,000 Disbursements $100,000 $110,000 $110,000 $150,000 $180,000 $180,000 March April May June This preview has intentionally blurred parts. Unlock to view the full content. Lmlck Document 92 Chapter 6: Managing Cash Flow $200,000 $250,000 September $250,000 $200,000 November $140,000 December $100,000 $180,000 $180,000 $150,000 $110,000 100,000 100,000 October A. Determine whether Itsar Products will have a cash need during the next year. Cash Receipts $100,000 $90,000 $80,000 Cash Disbursements $100,000 $110,000 $110,000 $150,000 $180,000 $180,000 $180,000 $180,000 Monthly Cumulative Rec Disb Amount Month January February 20,000 20,000 30,000 50,000 -60,000 20,000 20,000 70,000 50,000 100,000 160,000 180,000 -160,000 90,000 $100,000 $120,000 160,000 July $200,000 $250,000 September $250,000 $150,000 100,000 10,000 $200,000 November $140,000 December $100,000 $110,000 $100,000 100,000 90,000 40,000 $0 100,000 140,000 $140,000 Note: the January beginning cash on hand is S10,000. Since the minimum end of cash month Is also $10,000, there will be no change in cash on hand (i.e, the $10,000 beginning cash