1. Develop a monthly cash budget for Bluffton Pharmacy for the upcoming year.
2. If you were Bluffton Pharmacy's banker, would you be comfortable extending a line of credit to the pharmacy?
Homework Answers
| Answer to Question 1 | |||||||||||||
| Cash Budget for the upcoming year | |||||||||||||
| Jan | Feb | March | April | May | June | July | August | September | October | November | December | ||
| Opening cash balance | 74,473.00 | 65,910.01 | 89,979.59 | 88,295.45 | 86,795.21 | 85,943.35 | 80,837.76 | 75,987.16 | 74,770.49 | 75,656.11 | 85,660.46 | 89,284.26 | Total |
| Cash Generated through sales | 2,73,991.51 | 2,41,044.73 | 2,23,339.06 | 2,02,184.79 | 1,78,679.09 | 1,70,150.25 | 1,65,484.37 | 1,61,511.15 | 1,71,205.40 | 2,02,022.38 | 2,34,602.17 | 2,49,307.09 | 24,73,521.98 |
| Other Cash Receipts | 105 | 55 | 60 | 75 | 85 | 55 | 65 | 60 | 65 | 85 | 95 | 110 | 915.00 |
| COGS | -2,44,164.49 | -1,78,331.15 | -1,84,146.21 | -1,66,701.02 | -1,37,624.94 | -1,35,686.84 | -1,33,747.97 | -1,25,994.82 | -1,29,871.78 | -1,53,132.03 | -1,91,899.37 | -1,97,714.43 | -19,79,015.06 |
| Rent | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -3,083.00 | -36,996.00 |
| Utilities | -1,049.00 | -1,083.00 | -980.00 | -809.00 | -798.00 | -787.00 | -741.00 | -764.00 | -901.00 | -1,129.00 | -1,163.00 | -1,197.00 | -11,401.00 |
| Advertisement | -1,150.00 | -1,188.00 | -1,075.00 | -888.00 | -875.00 | -863.00 | -813.00 | -838.00 | -988.00 | -1,238.00 | -1,275.00 | -1,313.00 | -12,504.00 |
| Insurance | - | - | -2,700.00 | - | - | -2,700.00 | - | - | -2,700.00 | - | - | -2,700.00 | -10,800.00 |
| Salaries, Wages & benefits | -27,404.00 | -27,515.00 | -27,182.00 | -26,627.00 | -26,590.00 | -26,553.00 | -26,405.00 | -26,479.00 | -26,923.00 | -27,663.00 | -27,774.00 | -27,885.00 | -3,25,000.00 |
| Computer System & E Commerce | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -1,042.00 | -12,504.00 |
| Repail & Maintenance | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -2,000.00 | -24,000.00 |
| Travel | - | - | -150.00 | - | -5,000.00 | - | - | - | -200.00 | - | - | - | -5,350.00 |
| Professional Fee | - | - | - | - | - | - | - | - | - | - | - | -3,900.00 | -3,900.00 |
| Supplies | -644.00 | -665.00 | -602.00 | -497.00 | -490.00 | -483.00 | -455.00 | -469.00 | -553.00 | -693.00 | -714.00 | -735.00 | -7,000.00 |
| Loan Payments | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -2,073.00 | -24,876.00 |
| Other | -50.00 | -50.00 | -50.00 | -40.00 | -40.00 | -40.00 | -40.00 | -45.00 | -50.00 | -50.00 | -50.00 | -50.00 | -555.00 |
| Ending Cash Balance | 65,910.01 | 89,979.59 | 88,295.45 | 86,795.21 | 85,943.35 | 80,837.76 | 75,987.16 | 74,770.49 | 75,656.11 | 85,660.46 | 89,284.26 | 95,008.92 | |
| Answer to Question 2 | |||||||||||||
| It is comfortable as banker to extend line of credit, because there is surplus fund with Bluffton pharmacy in the coming year. | |||||||||||||
Add Answer to:
1. Develop a monthly cash budget for Bluffton Pharmacy for the
upcoming year.
2. If you...
1. Calculate the 12 ratios for Bluffton pharmacy for this year. 2. How do the ratios...
1. Calculate the 12 ratios for Bluffton pharmacy for this
year.
2. How do the ratios you calculated for this year compare to
those for the pharmacy last year?
Case 6 Bluffton Pharmacy wo New Pharmacy Owners Learn valuable Lessons About Financial statements and Analysis has been a little more than two years since Angela Craw- and and Martin Rodriguez purchased the Bluffton Pharmacy from Frank White, the previous owner and founder, who had started the pharmacy in 1969. The...
a cash budget forecast for Viggio for the next six months
· You need to do a cash budget forecast for Viggio for the next six months· From this cash budget see if Viggio may need to reuse the line of credit that the bank has set up for him. · If he does need to use it, how much of it will he need to borrow and what seems to be the reason that his cash flow isn't what it should be. Viggio Wines Cash BudgetLouis Viggio was doing something he...
a. Prepare a schedule of monthly cash receipts for January, February, and March. b. Prepare...
a. Prepare a schedule of monthly cash receipts for January,
February, and March.
b. Prepare a schedule of monthly cash payments for January,
February, and March.
c. Prepare a monthly cash budget with borrowings and repayments
for January, February, and March. (Negative amounts should be
indicated by a minus sign. Assume the January beginning loan
balance is $0.)
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to...
Decker Manufacturing is preparing its master budget for the first quarter of the upcoming year. The...
Decker Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to deckers manufacturing s operation Current Assets as of December 31 (prior year): Cash 4600 Accounts receivable, net 47000 Inventory 15100 Property, plant, and equipment, net 123000 Accounts payable. 43000 Capital stock. 123500 Retained earnings. 23100 a. Actual sales in December were $71,000. Selling price per unit is projected to remain stable at $12 per unit throughout the budget period. Sales...
Short Answer Question 1: Develop a cash budget for the next month using the information provided...
Short Answer Question 1: Develop a cash budget for the next month using the information provided below. Comment on whether your firm will make additions to the short-term investment portfolio or be required to seek funds from a line of credit. The sales forecasts for the next month is $210,000 The current months sales were $140,000 80% of sales are collected in the month of sale, with the remainder collected in the following month Cost of goods sold equal 70%...
Dalley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The...
Dalley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalley Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements. Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Dalley Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter Cash sales Credits sales Total...
You need to do a cash flow forecast for Viggio for the next six months From...
You need to do a cash flow forecast for Viggio for the
next six months
From this cash flow see if Viggio may need to reuse the
line of credit that the bank has set up for him.
If he does need to use it, how much of it will he need
to borrow
If he does not need to use it, can you suggest a reason
why he may have run out of cash the previous year.
Louis Viggio...
Big Al’s Pizza, Inc. needs a cash budget for year 3 and has provided you with...
Big Al’s Pizza, Inc. needs a cash budget for year 3 and has provided you with the following information. Sales are all on account and are estimated to be collected over a three-month period, with 70 percent collected in the month of sale, 25 percent collected in the next month and 4 percent collected in the third month. The remaining 1 percent is estimated to be uncollectible. December and November sales from the previous year were $201,638 and $185,000 respectively....
Question 1 Dudley Manufacturing is preparing its master budget for the first month of the upcoming...
Question 1 Dudley Manufacturing is preparing its master budget for the first month of the upcoming year. The following data pertain to ar East Manufacturing's operations: • Account Balances as at December 31(prior year): Cash RM4,500 Account Receivable, net RM50,000 Inventory RM15,000 Account Payable RM42,400 Actual sales in December were RM70,000. Selling price per unit is projected to remain stable at RM10 per unit throughout the budget period. Sales for the first two months of the upcoming year are budgeted...
LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The...
LBL Corporation is preparing its master budget for the first
quarter of the upcoming year. The following contains detail on
LBL’s operations necessary for their master budget:
LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL's operations necessary for their master budget: Sales Information Actual Projected Sales are as follows: December (Prior Year; Actual): $75,000 January (Estimated) $85,000 February (Estimated): $91,000 March (Estimated): $96,000 April (Estimated): $112,000 May...
1. Calculate the 12 ratios for Bluffton pharmacy for this
year.
2. How do the ratios you calculated for this year compare to
those for the pharmacy last year?
Case 6 Bluffton Pharmacy wo New Pharmacy Owners Learn valuable Lessons About Financial statements and Analysis has been a little more than two years since Angela Craw- and and Martin Rodriguez purchased the Bluffton Pharmacy from Frank White, the previous owner and founder, who had started the pharmacy in 1969. The...
a. Prepare a schedule of monthly cash receipts for January,
February, and March.
b. Prepare a schedule of monthly cash payments for January,
February, and March.
c. Prepare a monthly cash budget with borrowings and repayments
for January, February, and March. (Negative amounts should be
indicated by a minus sign. Assume the January beginning loan
balance is $0.)
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to...
Dalley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dalley Manufacturing's operations: (Click the icon to view the data.) (Click the icon to view additional data.) Read the requirements. Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total. Dalley Manufacturing Cash Collections Budget For the Quarter Ended March 31 Month January February March Quarter Cash sales Credits sales Total...
You need to do a cash flow forecast for Viggio for the
next six months
From this cash flow see if Viggio may need to reuse the
line of credit that the bank has set up for him.
If he does need to use it, how much of it will he need
to borrow
If he does not need to use it, can you suggest a reason
why he may have run out of cash the previous year.
Louis Viggio...
Question 1 Dudley Manufacturing is preparing its master budget for the first month of the upcoming year. The following data pertain to ar East Manufacturing's operations: • Account Balances as at December 31(prior year): Cash RM4,500 Account Receivable, net RM50,000 Inventory RM15,000 Account Payable RM42,400 Actual sales in December were RM70,000. Selling price per unit is projected to remain stable at RM10 per unit throughout the budget period. Sales for the first two months of the upcoming year are budgeted...
LBL Corporation is preparing its master budget for the first
quarter of the upcoming year. The following contains detail on
LBL’s operations necessary for their master budget:
LBL Corporation is preparing its master budget for the first quarter of the upcoming year. The following contains detail on LBL's operations necessary for their master budget: Sales Information Actual Projected Sales are as follows: December (Prior Year; Actual): $75,000 January (Estimated) $85,000 February (Estimated): $91,000 March (Estimated): $96,000 April (Estimated): $112,000 May...
Most questions answered within 3 hours.
-
Let X be a continuous random variable whose PDF is Let X be a
continuous random...
asked 9 minutes ago -
Martinez Company’s relevant range of production is 7,500 units
to 12,500 units. When it produces and...
asked 7 minutes ago -
A football with a mass of 1.2 kg is kicked from ground level to
a height...
asked 13 minutes ago -
Remember: Changes in supply determinants shift supply, and
changes in demand determinants shift demand. We say...
asked 12 minutes ago -
Why is the answer b), for this question? I came up with C) for
my incorrect...
asked 18 minutes ago -
Suppose that you know that in the population of full-time
employees in the United States, the...
asked 40 minutes ago -
This experiment was designed originally to sample various meat and carcass quality
aspects of Ontario pigs...
asked 40 minutes ago -
Dopamine Hydrochloride: draw the structure And Show the
functional groups in different colors and label the...
asked 32 minutes ago -
A rope supports a 10 kg dumbbell hanging from it. What is the
tension in the...
asked 32 minutes ago -
) Raw materials are studied for contamination. Suppose that
the number of particles of contamination per...
asked 54 minutes ago -
After running a regression analysis we calculated an F test and
the significance level was 0.15....
asked 50 minutes ago -
----Can someone please help me solve this one using JAVA
----I thank you in advance
Create...
asked 55 minutes ago