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Please use EXCEL!!!!!!

Using the information provided, construct a monthly cash budget for October through December 2014. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing? Construct a pro forma income statement for the first fiscal quarter of 2015 and a pro forma balance sheet as of December 31,2014. What is vour estimated external financine needed for December 31? 4 b 5 cDoes the December 31, 2014, estimated external financing equal your cash surplus (deficit) for this date from your cash Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2014. Noble Selected Information and Financial Statements Sales (20 percent for cash, the rest on 30-day credit terms): 2014 Actual 10 2014 Projected July August Septe October November December 76,000 88,000 266,000 125,000 51,000 53,000 12 13 14 15 Purchases (all on 60-day terms 2014 Actual 2014 Projected July 116,000 ugust SeptemberOctober 122,000 November December 257,000 62,000 27,000 26,000

20,000 25,700 9,000 15,000 19,000 4,000 laries payable monthly P 21 22 23 rincipal payment on debt due in December Interest due in December Dividend pavable in December Taxes payable in November 25 Addition to accumulated depreciation in Decembe 26 27 Cash balance on October 1,2014 28 Minimum desired cash balance 29 30 31 32 33 Nobles annual income statement and balance sheet for September 30, 2014 appear below 34 Additional information about the companys accounting methods and expectations for 35 the last three months of 2014 appear in the footnotes. 34,000 15,000

Noble Annual Income Statement 37 38 39 40 41 Net sales 42 Cost of goods sold1 43 Gross profits 44 Selling and administrative ex 45 I 46 Depreciation3 47 Net profit before tax 48 Tax at 33% 49 Net profit after tax 50 51 52 53 54 Fiscal Year ended September 30, 2014 ($ 000 1,581.6 1,098.0 483.6 240.0 18.0 16.0 209.6 69.2 140.4 nterest expense Noble Balance Sheet tember 30, 2014 ($ 000 56 Assets 57 Cash 58 Accounts receivable 59 Invento 60 Total current assets 61 Gross fixed assets 62 Accumulated depreciation 63 Net fixed assets 64 Total assets 65 34.0 212.8 425.0 671.8 135.0 52.0 83.0 754.8

66 67 68 69 70 71 72 73 74 Liabilities Bank loan Acc Accrued expense$4 Current portion long-term debt5 Taxes payable 0.0 379.0 55.0 25.7 56.0 515.7 120.0 119.1 754.8 ounts payable Total current liabilities Long-term debt Shareholders equity Total liabilities and equity 76 771. Cost of goods sold consists entirely of items purchased during the quarter 78 2. Selling and administrative expenses consist entirely of salarie 79 3. Depreciation is straight-line at the rate of $4,000 per quarter 80 4. Acc rter. 81 5. $25.7 due December 2014. No payments for remainder of year. rued expenses are not expected to change in the last qua

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Answer #1
a & d. Monthly cash budget(Oct.-Dec.2014)
Oct. Nov. Dec. Quarter
Beginning balance 34000 129800 15000 34000
Sales collections
Cash sales(20%*Mthly sales budgeted) 25000 10200 10600 45800
A/cs. Rec. (Sep.sales) 212800 212800
Other 80% collections of:
Oct. 14 100000 100000
Nov. 14 40800 40800
1.Total cash available 271800 240000 66400 433400
Cash disbursements:
For purchases:
Aug. 14 122000 122000
Sep. 14 257000 257000
Oct. 14 62000 62000
Salaries 20000 20000 20000 60000
Principal payment 25700 25700
Interest 9000 9000
Dividend 15000 15000
Taxes 19000 19000
2.Total disbursements 142000 296000 131700 569700
Surplus/(Deficit)(1-2) 129800 -56000 -65300 -136300
Ext. Fin. Needed 0 71000 80300 151300
Ending balance 129800 15000 15000 15000
b.
Proforma Income statement for the Qtr. Oct-Dec.2014
Net sales(125000+51000+53000) 229000
COGS(62000+27000+26000) 115000
Gross profit 114000
Sell.& Admn. Exp.(20000*3) 60000
Interest expense 9000
Depn. 4000
Net profit before tax 41000
Tax at 33% 13530
Net profit after tax 27470
Proforma Balance Sheet
As at Dec. 2014
Cash 15000
Accounts Receivables(Dec'14-53000*80%) 42400
Inventory(425000+115000-115000) 425000
Total current assets 482400
Gross Fixed assets 135000
Less: Acc. Depn.(52000+4000) 56000
Net fixed assets 79000
Total assets 561400
Liabilities
Bank Loan-External Financing Needed(Bal.Fig.) 151300
Accounts payable(27000+26000) 53000
Accrued expenses 55000
Taxes payable(56000+13530-19000) 50530
Total current liabilities 309830
Long-term debt 120000
Shareholders' Equity(119100+27470-15000) 131570
Total Liabilities 561400
Estimated EFN for the quarter ended Dec. 2014 (from b. above) = 151300

c. YES

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