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BUSN 5200 Week 5 Homework Assignment Misc. problems




Question;Question 1. Prepare a budget for this year for the Administrative Department at Tom?s Toyota Company based on the following information:Last Year Forecasting Assumption Budget for this YearSalaries $60,000 2% increase ___________Stationary $ 900 1% decrease ___________Telephone $ 2,500 3% increase ___________Electricity $ 1,200 2.5% increase ___________Office Rent $10,000 2% increase ___________Depreciation $ 4,000 no change ___________Total: $78,600 ___________Question 7. Big Bob's Discount Appliances expects sales of $5,000, $5,000, and $10,000 during April, May, and June (big sale in June). To build business, Big Bob lets all customers buy on credit, and all do so. In the past, 50% of Big Bob's sales have been collected during the month of sale, 40% are collected the following month, and 10% the month after that. If this trend continues, what will be Big Bob's total cash collections in the month of June?Question 8. Little Louie?s expects to have $100 in cash on hand at the beginning of June, and the company's target cash balance is $100. Net cash flow for June is minus $300. Assuming that Little Louie?s borrows to meet short term cash needs and pays back as soon as surplus cash is available, what will be the company's ending cash balance after financing at the end of June?Question 9. Ma & Pa Kettle?s Chili Company has begun selling a new chili recipe and they want you to help them with next year?s budgeted financial statements. Using the worksheet below, complete Ma & Pa?s forecast and answer the questions which follow.Assumptions:To begin with, Ma & Pa are sure sales will grow 50% next year. Assume that is true. Then assume that COGS, Current Assets, and Current Liabilities all vary directly with Sales (that means if sales grows a certain percentage, then the account in question will grow by that same percentage). Assume that fixed expenses will remain unchanged and that $1,000 worth of new Fixed Assets will be obtained next year. Lastly, the current dividend policy will be continued next year.Ma & Pa Kettle Chili Company, Inc.Financial ForecastEstimatedThis year for next yearSales $10,000 ________COGS 4,000 ________Gross Profit 6,000 ________Fixed Expenses 3,000 ________Before Tax Profit 3,000 ________Tax @ 33.3333% 1,000 ________Net Profit $2,000 ________Dividends $0 ________Current Assets $25,000 ________Net Fixed Assets 15,000 ________Total Assets $40,000 ________Current Liabilities $17,000 ________Long term debt 3,000 ________Common Stock 7,000 ________Retained Earnings 13,000 ________Total Liabs & Eq $40,000 ________Amount need to balance the balance sheet ________(Projected total assets minus projectedtotal liabilities & equity *)* If this number is positive it means Ma & Pa need additional external funding to finance their projected asset growth. If this number is negative it means Ma & Pa have programmed too much financing for the amount of assets they project.Case Study Tasks:1. Revise your Financial Overview file based on your instructor?s feedback when received.2. Begin working on the Ratio Analysis section of your report. Refer to the Case Study topic lecture for this week for specific guidelines.


Paper#39423 | Written in 18-Jul-2015

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