So, use both help sheets to complete this assignment!
Cash Outflows
1. Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research
2. Other cash receipt: Rental income $15,000 per month (This is given, just plug this amount in)
3. Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 50 percent of sales On this line, take 50% of sales in that month and plug it in here.
4. Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase This is a given, just take 30% of material cost for the month after the material purchase.
5. Selling and marketing expense: Five percent of sales Just calculate 5% of sales for the month an plug in.
6. General and administrative expense: Twenty percent of sales These are givens, take 20% of sales for the month
7. Interest payments: $75,000—Payable in December Plug this amount in for December only
8. Tax payments: $15,000—Quarterly due on 15th of April, July, October, and January This is a given plug in for the months listed
9. Minimum cash balance desired: $25,000 per month If you do not have this amount, then below it you will plug either a surplus or (deficit)
10. Cash balance start of month (December): $15,000 Given
11. Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit
12. Dividend payment: None
mcahan
class_help_with_mod3a2.docx
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