To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CB 1

[ad_1]

To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:

Don't use plagiarized sources. Get Your Custom Essay on
To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CB 1
Just from $13/Page
Order Essay

March                   $100,000

April                       $275,000

May                       $320,000

June                      $450,000

July                        $700,000

August                  $700,000

September         $825,000

October               $500,000

November          $115,000

He has also gathered the following collection estimates regarding the forecast sales:

Payment collection within the month of sale = 25%

Payment collection the month following sales = 55%

Payment collection the second month following sales = 20%

Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:

March                   $187,500

April      $206,250

May                       $375,000

June                      $337,500

July                        $431,250

August                  $640,000

September         $395,000

October               $425,000

Additional financial information is as follows:

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.

To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.

Group Project Guidelines

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:

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?

It is up to the members of the group to divide the assignment tasks evenly. You will be graded on group participation

Your submitted Group Project (150 points) must include the following:

75 Points. An Excel spreadsheet that contains your group’s monthly cash budget for Cyrus Brown Manufacturing.

75 Points. A double-spaced Word document of 1–2 pages that contains your answers to the questions listed in the Assignment Guidelines.



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA