Fin 370 Week 3 Essay

685 WordsMay 3, 20123 Pages
Assignments from the readings Week 3 4-6A. a. Prepare a cash budget for Sharpe covering the first seven months of 2004. The Sharpe Corporation Cash Budget Worksheet | | Month | | | November | December | January | February | March | April | May | June | July | August | Sales | $220,000 | $175,000 | $90,000 | $120,000 | $135,000 | $240,000 | $300,000 | $270,000 | $225,000 | $150,000 | Collections: | | | | | | | | | | | Month of Sale (10%) | | | $9,000 | $12,000 | $13,500 | $24,000 | $30,000 | $27,000 | $22,500 | | First Month (60%) | | | $105,000 | $54,000 | $72,000 | $81,000 | $144,000 | $180,000 | $162,000 | | Second Month (30%) | | | $66,000 | $52,500 | $27,000 | $36,000 | $40,500 | $72,000 | $90,000 | | Total Collections | | | $180,000 | $118,500 | $112,500 | $141,000 | $214,500 | $279,000 | $274,500 | | Purchases | | $72,000 | $81,000 | $144,000 | $180,000 | $162,000 | $135,000 | $90,000 | | | Payments (one month lag) | | | $72,000 | $81,000 | $144,000 | $180,000 | $162,000 | $135,000 | $90,000 | | Cash Receipts: | | | | | | | | | | | Collections | | | $180,000 | $118,500 | $112,500 | $141,000 | $214,500 | $279,000 | $274,500 | | Cash Disbursements: | | | | | | | | | | | Purchases | | | $72,000 | $81,000 | $144,000 | $180,000 | $162,000 | $135,000 | $90,000 | | Rent | | | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | | Other Expenditures | | | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | $20,000 | | Tax Deposits | | | | | $22,500 | | | $22,500 | | | Interest on Short-term Borrowing | | | | | | $605 | $386 | | | Total Disbursements | | | $102,000 | $111,000 | $196,500 | $210,000 | $192,605 | $187,886 | $120,000

More about Fin 370 Week 3 Essay

Open Document