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##### BUSN 5200 Assinment week 5

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Question;BUSN 5200;Homework;Assignment for Week 5;For Week 5, please turn in the answers to;the following questions;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 Year;Salaries;\$60,000;2% increase;\$61,200;Stationary;\$900;1% decrease;\$820.00;Telephone;\$2,500;3% increase;\$2,575.00;Electricity;\$1,200;2.5% increase;\$1,230;Office Rent;\$10,000;2% increase;\$10,200;Depreciation;\$4,000;no change;\$4,000;Total: \$78,600;\$80,025.00;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;Forecast;Estimated;This year for next year;Sales;\$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 projected;total 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.

Paper#50194 | Written in 18-Jul-2015

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