Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Finance
  4. / Accounting
  5. / Accounting In General

by bambi on March 31st, 2008

bambi

Question

Help answer this question below.

Hello I have a problem solving this problem. Can anyone please help me? Create a 12-month cash budget: Initial sales of $5,000,000 with forecasted monthly growth of 1% 40% of each month’s

Share:
Other

Answers. 2 helpful answers below.

  • by bambi on March 31st, 2008

    bambi

    Hello Maya

    There are more questions in the problem.

    I will type the question again. The problem is:

    Create a 12-month cash Budget:
    ==> Initial sales of $5,000,000 with forecasted monthly growth of 1%.
    ==>40% of each month's sales for cash; 30% collected the following month; 20% collected 2 months later, 8% collected 3 months later; and 2% never collected.
    ==> Initial cash balance of $350,000.
    ==> Add Expected Cash outflows equal to 77% of the current month's sales.
    ==> Also add a row to calculate the amount of cash that needs to be borrowed in order to maintian a minimum cash balance of %50,000 at the end of each month.
    ==> Add another row to show the cash inflow from borrowing.
    ==> Add another to show the cumulative amount borrowed.
    ==> add another row to show amount of the loan that can be repaid, being sure to maintain a minimum ending balance of $50,000 each month.
    ==> Add appropriate data validation controls to ensure spreadsheet accuracy.

    Here is the following format I suppose to follow:

    Begining Balance XXXXXX
    Add: Cash Receipts:
    Cash Sales XXXXXX
    Collections on Account XXXXXX
    Total Cash Available (A) XXXXXX
    Less:Cash Disbursement (B) (XXXXX)
    Ending Cash Balance (C= A-B) XXXXXX
    Desired Minimum Balance (D) XXXXXX
    Amount needed to borrow XXXXXX
    Ending Balance XXXXXX

    Please help me to solve this problem until May. Then I can solve the rests.

    Thank you

    No comments. Post one | Permalink

  • by Maya on March 31st, 2008

    Maya

    is it 1 to 40%?

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading Hello I have a problem solving this problem. Can anyone please help me? Create a 12-month cash budget: Initial sales of $5,000,000 with forecasted monthly growth of 1% 40% of each month’s

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Create a 12 month cash budget in excel initial cash balance of 350000
40 of each month s sales for cash 30 collected the following month 20 collected 2 months later 8 collected 3 months later 2 never collected
Cash budget solving problem
Intial sales of 5 000 000 with forecasted montly growth of 1
What do they mean by 5 000 000 of initial sales with monthly growth of 1

Answerbag

a Demand Media company