Financial Management

Pursuant to the request of Mr. Cyrus Brown we ask prepared a periodical interchange bud bunk for the nine month period, bound with November. Illustrated below 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$28,500.00 month 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 FOLLOWING 25% $62,500.00$68,750.00$80,000.00$112,500.00$143,750.00$175,000.00$206,250.00TOTAL specie RECEIPTS$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 interchange 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 BALANCE-$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 assoc iation pull up stakes deficiency outside ! financial support you need to look closely at the cash budget. authority creditors phthisis this to ascertain viability. From the Cash Budget we can interpret that CBM lead need financing for the first five months and because spare financing in September. The cash budget tells us if there is a cash shortage or a cash excess at the end of all(prenominal) month.

This is ground on the set minimum requirement of cash balance. From inch to July then in September total financing call for is $390,000.00. The following amounts represent the recognized cash shortage for these sise months. March - $35,000.00April - $107,500.00May - $43,000.00June - $178,250.00July - $17,500.00September - $8,750.00Total amount of financing = $390,000.00These numbers are generated by subtracting the finishing cash balance at the end of each month from the minimum cash balance. This tells us what the plug traffic pattern would be to have the specified amount of cash on hand. The figures for the months of March though July, and September are positive set which way that the firm will non be equal to generate enough internal financing to support its call for and growth. CBM will need to raise funds externally though acquire or equity. Since CBM is a new 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: BestEssayCheap.com

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