10

10. Calculating the Cash Budget Here are some important figures from the budget of
SUL EN) Side! AS HAS f sesh quarter of 2016:
Credit sales $601,900 $627,300 $693,790
Credit purchases 232,850 277,900 317,380
Cash disbursements
Wages, taxes, and expenses 62.964 76,364 79,670
Interest 18,058 18,058 18,058
Equipment purchases 131,400 144,200 0
The company predicts that 5 percent of its credit sales will never be collected, 35 percent
of its sales will be collected in the month of the sale, and the remaining 4) percent will
be collected in the following month. Credit purchases will be paid in the month following
the purchase.
In March 2016, credit sales were $332,640, and credit purchases were $247,100.
Using this information, complete the following cash budget:
Beginning cash balance $443,500
Cash receipes
Cash collections from credit sales
Total cash available
Cash disbursements
Purchases
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements
Ending cash balance

Analyze Cash Budgets, Inventory Management and Account Receivables

Assume the role of a manufacturing financial controller where you are making a presentation to the board of directors.
 

Create a PowerPoint presentation in which you include the following:
 

• From the text, complete the cash flow statement on page 827, problem # 10.
• Using a visual model, present a discussion on the drivers to the end of June cash position.
• Based on the ending cash balances for April through June, describe alternative ways that the cash position could be addressed each month with either funding or with investment of excess cash.
• Include a discussion on the optional ways to set up credit for customers and the benefits and costs of each option. Form an argument for what you believe to be the best approach.
   

Incorporate appropriate animations, transitions, and graphics as well as “speaker notes” for each slide. The speaker notes may be comprised of brief paragraphs or bulleted lists.
 

Support your presentation with at least five (5) scholarly resources. Must be APA Formate
 

Length: 12-15 slides (with a separate reference slide).
Notes Length: 100-150 words for each slide.

Attached (Below) you will find the information you will need to complete the cash flow statement