Financial Management

Pursuant to the request of Mr. Cyrus Brown we shoot prep ared a hebdomadary interchange budget for the ball club month period, surround with November. Illustrated at a lower place are our findings. sueAprilMayJuneJulyAugustSeptemberOctoberNovemberSALES$250,000.00$275,000.00$320,000.00$450,000.00$575,000.00$700,000.00$825,000.00$350,000.00$285,000.00COLLECTION OF A/R 10%$25,000.00$27,500.00$32,000.00$45,000.00$57,500.00$70,000.00$82,500.00$35,000.00$28,500.00MONTH pursual (65%) $162,500.00$178,750.00$208,000.00$292,500.00$373,750.00$455,000.00$536,250.00$227,500.00SECOND MONTH quest 25% $62,500.00$68,750.00$80,000.00$112,500.00$143,750.00$175,000.00$206,250.00 app check specie put across$25,000.00$190,000.00$273,250.00$321,750.00$430,000.00$556,250.00$681,250.00$746,250.00$462,250.00COST OF MATERIALS -$187,500.00-$206,250.00-$240,000.00-$337,500.00-$431,250.00-$525,000.00-$618,750.00-$262,500.00RENT PAYMENTS-$15,000.00-$15,000.00-$15,000.00-$15,000.00-$15,000.00-$15,000.00-$15,000.00-$15,000.00-$15,000.00WAGES AND SALARIES-$35,000.00-$35,000.00-$35,000.00-$35,000.00-$35,000.00-$35,000.00-$35,000.00-$35,000.00-$35,000.00TAX PAYMENTS -$55,000.00 -$55,000.00FIXED summation OUTLAYS -$95,000.00MISC EXPENSES-$10,000.00-$10,000.00-$10,000.00-$10,000.00-$10,000.00-$10,000.00-$10,000.00-$10,000.00-$10,000.00TOTAL exchange DISBURSEMENTS-$60,000.00-$247,500.00-$266,250.00-$450,000.00-$397,500.00-$491,250.00-$640,000.00-$678,750.00-$322,500.00NET CASH FLOW-$35,000.00-$57,500.00$7,000.00-$128,250.00$32,500.00$65,000.00$41,250.00$67,500.00$139,750.00ADD:BEGINNING CASH$50,000.00ENDING CASH$15,000.00-$57,500.00$7,000.00-$128,250.00$32,500.00$65,000.00$41,250.00$67,500.00$139,750.00LESS: nominal CASH eternal sleep-$50,000.00-$50,000.00-$50,000.00-$50,000.00-$50,000.00-$50,000.00-$50,000.00-$50,000.00-$50,000.00REQUIRED TOTAL FINANCING$35,000.00$107,500.00$43,000.00$178,250.00$17,500.00$0.00$8,750.00$0.00$0.00EXCESS CASH BALANCE $15,000.00 $67,500.00$139,750.00To fall if the company shoot up stakes lack outside support you lease to look closely at the hard currency budget. Potential creditors consumption this to ascertain viability. From the Cash budget we can see that CBM execute need financing for the primary five months and accordingly liberal financing in September. The bills budget tells us if on that point is a hard currency deficit or a cash excess at the end of each month.

This is based on the set minimum prerequisite of cash balance. From ring to July and then in September bring financing required is $390,000.00. The followers meats represent the recognized cash shortage for these six months. display - $35,000.00April - $107,500.00May - $43,000.00June - $178,250.00July - $17,500.00September - $8,750.00Total amount of financing = $390,000.00These add up are bring backd by subtracting the cultivation cash balance at the end of each month from the minimum cash balance. This tells us what the plug figure would be to befool the specified amount of cash on hand. The figures for the months of March though July, and September are positive look upons which bureau that the firm give not be able to generate enough internal financing to support its needs and growth. CBM will need to raise bills externally though con or equity. Since CBM is a wise company and does not have equity yet, it will need to finance by borrowing. In August, CBM shows a negative value for external... If you want to get a full essay, order it on our website: Orderessay

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