Year Month Sales Purchases 2015 September $207,000 $118,000 2015 October 248,000 146,000 2015 November 166,000 143,000 2015 December 165,000 102,000 2016 January 135,000 76,000 2016 February 185,000 105,000 2016 March 196,000 102,000 2016 April 254,000 92,000

Cash

budgetlong dash

Advanced

The actual sales and purchases for Xenocore, Inc., for September and October 2015, along with its forecast sales and purchases for the period November 2015 through April 2016, follow

LOADING...

.

The firm makes

20 %

of all sales for cash and collects on

40 %

of its sales in each of the 2 months following the sale. Other cash inflows are expected to be

$ 10 comma 000

in September and April,

$ 15 comma 000

in January and March, and

$ 25 comma 000

in February. The firm pays cash for

8 %

of its purchases. It pays for

46 %

of its purchases in the following month and for

46 %

of its purchases 2 months later. Wages and salaries amount to

20 %

of the preceding month's sales. Rent of

$ 22 comma 000

per month must be paid. Interest payments of

$ 9 comma 000

are due in January and April. A principal payment of

$ 33 comma 000

is also due in April. The firm expects to pay cash dividends of

$ 19 comma 000

in January and April. Taxes of

$ 77 comma 000

are due in April. The firm also intends to make a

$ 24 comma 000

cash purchase of fixed assets in December.

a. Assuming that the firm has a cash balance of

$ 24 comma 000

at the beginning of November, determine the end-of-month cash balances for each month, November through April.

b. Assuming that the firm wishes to maintain a

$ 16 comma 000

minimum cash balance, determine the required total financing or excess cash balance for each month, November through April.

c. If the firm were requesting a line of credit to cover needed financing for the period November to April, how large would this line have to be? Explain your answer.

a. Assuming that the firm has a cash balance of

$ 24 comma 000

at the beginning of November, determine the end-of-month cash balances for each month, November through April.

Complete the November cash budget for Xenocore, Inc. below:(Round to the nearest dollar.)

	Xenocore, Inc.
	Sept		Oct		Nov
Forecast sales	$	207,000	$	248,000	$	166,000
Cash sales					$
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	118,000	$	146,000	$	143,000
Cash purchases					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$

Complete the December cash budget for Xenocore, Inc. below:(Round to the nearest dollar.)

	Xenocore, Inc.
	Oct		Nov		Dec
Forecast sales	$	248,000	$	166,000	$	165,000
Cash sales					$
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	146,000	$	143,000	$	102,000
Cash purchases					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$

Complete the January cash budget for Xenocore, Inc. below:(Round to the nearest dollar.)

	Xenocore, Inc.
	Nov		Dec		Jan
Forecast sales	$	166,000	$	165,000	$	135,000
Cash sales					$
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	143,000	$	102,000	$	76,000
Cash purchases					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$

Complete the February cash budget for Xenocore, Inc. below:(Round to the nearest dollar.)

	Xenocore, Inc.
	Dec		Jan		Feb
Forecast sales	$	165,000	$	135,000	$	185,000
Cash sales					$
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	102,000	$	76,000	$	105,000
Cash purchases					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$

Complete the March cash budget for Xenocore, Inc. below:(Round to the nearest dollar.)

	Xenocore, Inc.
	Jan		Feb		Mar
Forecast sales	$	135,000	$	185,000	$	196,000
Cash sales					$
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	76,000	$	105,000	$	102,000
Cash purchases )					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$

Complete the April cash budget for Xenocore, Inc. below:(Round to the nearest dollar.)

	Xenocore, Inc.
	Feb		Mar		Apr
Forecast sales	$	185,000	$	196,000	$	254,000
Cash sales					$
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	105,000	$	102,000	$	92,000
Cash purchases					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$

b. Assuming that the firm wishes to maintain a

$ 16 comma 000

minimum cash balance, determine the required total financing or excess cash balance for each month, November through April.

Complete the table below: (Round to the nearest dollar.)

	Xenocore, Inc.
	Nov		Dec		Jan		Feb		Mar		Apr
Ending cash	$		$		$		$		$		$
Minimum cash balance		16,000		16,000		16,000		16,000		16,000		16,000
Required total financing	$		$		$		$		$		$
Excess cash balance

c. The line of credit should be at least

$nothing

to cover the maximum borrowing needs for the month of

nothing

.

(Round to the nearest dollar. Type the full name of the month, e.g., February.)

Enter any number in the edit fields and then continue to the next question.