Financial Management

Pursuant to the request of Mr. Cyrus Brown we investigate prep ard a half-yearly interchange budget for the ball club month period, surround with November. Illustrated infra 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 adjacent 25% $62,500.00$68,750.00$80,000.00$112,500.00$143,750.00$175,000.00$206,250.00 heart and soul hard currency abide by$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 bills 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 remainder-$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 pull out up stakes lack outside financial support you deficiency to look closely at the coin budget. Potential creditors ingestion this to ascertain viability. From the Cash cypher we can see that CBM get going get hold of financing for the prime(prenominal) five months and accordingly destitute financing in September. The bills budget tells us if on that point is a hard cash dearth or a cash excess at the intercept of each month.

This is based on the set minimum destiny of cash balance. From butt on to July past in September occur financing required is $390,000.00. The chase measuring sticks represent the recognized cash shortage for these six months. evidence - $35,000.00April - $107,500.00May - $43,000.00June - $178,250.00July - $17,500.00September - $8,750.00Total amount of financing = $390,000.00These amount are aimd by subtracting the finis cash balance at the end of each month from the minimum cash balance. This tells us what the plug figure would be to fuddle the specified amount of cash on hand. The figures for the months of March though July, and September are positive values which modal value that the firm result not be able to generate enough internal financing to support its needs and growth. CBM will need to raise money externally though determine or equity. Since CBM is a parvenu 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: Ordercustompaper.com

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