F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
14th Edition
ISBN: 9781259320576
Author: Ross, Westerfield, Jordan
Publisher: MCG CUSTOM
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Question
Chapter 16, Problem 1CC
Summary Introduction
Case summary:
Company P manufacturing is the manufacturer of cardboard boxes. The company decided to put all its receivables in one shoebox and all payables in others.
Due to this disorganized system, the company employed Person X. The company has a cash balance of $154,000 and is planning to purchase a new box folding in the fourth quarter at a cost of $325,000. The purchase of machinery is in cash mode because of the discounts offered. It needs to maintain a minimum cash balance of $100,000.
Characters in the case:
- Company P: The manufacturer
- Person X: The new employee
To determine: The cash budget and short-term financial plan of P manufacturers.
Introduction:
Cash budget is the numerical expression of cash inflows and outflows of the company during a specific period.
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Students have asked these similar questions
A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a. A rolling budget. d. A cash budget. b. An income statement. e. An operating budget. c. A balance sheet.
A cash flow budget can be used to
A. estimate when and how much money will need to be borrowed during the year
B. estimate when and how much debt can be repaid during the year
C. estimate when excess cash may be available so plans can be made to invest it
D. all of the above
PLEASE PREPARE A CASH BUDGET
Chapter 16 Solutions
F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
Ch. 16.1 - What is the difference between net working capital...Ch. 16.1 - Prob. 16.1BCQCh. 16.1 - Prob. 16.1CCQCh. 16.1 - List five potential sources of cash.Ch. 16.2 - What does it mean to say that a firm has an...Ch. 16.2 - Prob. 16.2BCQCh. 16.2 - Prob. 16.2CCQCh. 16.3 - Prob. 16.3ACQCh. 16.3 - Prob. 16.3BCQCh. 16.4 - Prob. 16.4ACQ
Ch. 16.4 - Prob. 16.4BCQCh. 16.5 - What are the two basic forms of short-term...Ch. 16.5 - Prob. 16.5BCQCh. 16.6 - Prob. 16.6ACQCh. 16.6 - Prob. 16.6BCQCh. 16 - Prob. 16.1CCh. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Prob. 16.5CCh. 16 - Prob. 16.6CCh. 16 - Operating Cycle. What are some of the...Ch. 16 - Prob. 2CTCRCh. 16 - Prob. 3CTCRCh. 16 - Cost of Current Assets. Kane Manufacturing. Inc.,...Ch. 16 - Prob. 5CTCRCh. 16 - Prob. 6CTCRCh. 16 - Prob. 7CTCRCh. 16 - Use the following information to answer Questions...Ch. 16 - Prob. 9CTCRCh. 16 - Prob. 10CTCRCh. 16 - Prob. 1QPCh. 16 - Prob. 2QPCh. 16 - Changes in the Operating Cycle. Indicate the...Ch. 16 - Prob. 4QPCh. 16 - Prob. 5QPCh. 16 - Prob. 6QPCh. 16 - Prob. 7QPCh. 16 - Prob. 8QPCh. 16 - Prob. 9QPCh. 16 - Prob. 10QPCh. 16 - Prob. 11QPCh. 16 - Prob. 12QPCh. 16 - Prob. 13QPCh. 16 - Prob. 14QPCh. 16 - Prob. 15QPCh. 16 - Prob. 16QPCh. 16 - Prob. 17QPCh. 16 - Prob. 18QPCh. 16 - Prob. 1CC
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Similar questions
- The cash budget is part of which category of budgets? sales budget cash payments budget finance budget operating budgetarrow_forwardWhich of the following is a finance budget? A. cash budget B. production budget C. direct materials purchasing budget D. tax budgetarrow_forwardWhich of the following includes only financial budgets? capital asset budget, budgeted income statement, sales budget production budget, capital asset budget, budgeted balance sheet cash budget, budgeted balance sheet, capital asset budget budgeted income statement, direct material purchases budget, cash budgetarrow_forward
- Which of the following is an operating budget? A. cash budget B. production budget C. tax budget D. capital budgetarrow_forwardA. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?arrow_forwardIdentify the document that contains the information listed in these lines from the budgeted balance sheet shown. Cash Accounts receivable Raw materials inventory Computers Accounts payablearrow_forward
- Which of the following describes the order in which the four types of budgets must be prepared? a. Production, sales, direct materials purchases, cash received on account b. Sales, production, direct materials purchases, cash budget c. Cash receipts, direct labor, production, sales d. Sales, direct materials purchases, production, cash disbursementsarrow_forwardWhich of the operating budgets is prepared first? A. production budget B. sales budget C. cash received budget D. cash payments budgetarrow_forwardWhat is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?arrow_forward
- need assistance with this cash budgetarrow_forwardPrepare a sales budget including a column for each year in and a column for the total. The budgets should also include a schedule of expected cash collection, by year and in total.Make your assumptions about the type of sales (cash versus credit) and your credit terms clear.arrow_forwardWhen preparing the cash budget, all the following should be considered except: Cash payments to suppliers. Cash payments for equipment. Depreciation expense. Cash receipts from customers.arrow_forward
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