REVIEW
ksenli- Administrative salaries will approximately amount to $35,000 a month.
- Lease payments around $15,000 a month.
- Depreciation charges, $15,000 a month.
- A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.
- Income tax payments estimated to be around $55,000 will be due in both June and September.
- And finally, miscellaneous costs are estimated to be around $10,000 a month.
- Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.
- As a group, prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November.
- Use Excel to prepare the monthly cash budget.
- Based on your cash budget findings, answer the following questions: this i need below.
- Will the company need any outside financing?
- What is the minimum line of credit that CBM will need?
- What do you think of CBM's cash position during the budget period? Do you see any concerns for the company in this regard?
- If you were a bank manager, would you want CBM as your client? Why or why not?
10 years ago
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