Question

In: Finance

The financial analyst for Sportif, Inc. has compiled sales and disbursement estimates for the coming months...

The financial analyst for Sportif, Inc. has compiled sales and disbursement estimates for the coming months of January through May. Historically, 75 percent of sales are for cash with the remaining 25 percent collected in the following month. The ending cash balance in January is $3,000.

Month Sportif, Inc., Sales Disbursements

January $5,000 $6,000

February 6,000 7,000

March 10,000 4,000

April 10,000 5,000

May 10,000 5,000

The total cash receipts for April are ________.

The net cash flow for February is_________.

The firm has a negative net cash flow in the month(s) of ________.

The ending cash balance for March is ________.

The ending cash balance for February is ________.

At the end of May, the firm has an ending cash balance of ________.

The firm has a total financing requirement of ________ for the period from February through May

If a pro forma balance sheet dated at the end of May was prepared from the information presented, the marketable securities would total ________.

Solutions

Expert Solution

Basic calculations before answering the list of questions

Feb March April May
Cash sales 4500 7500 7500 7500
Collections 1250 1500 2500 2500
Total Receipt 5750 9000 10000 10000
Disbursements 7000 4000 5000 5000
Net cash flow -1250 5000 5000 5000
Beginning balance 3000 1750 6750 11750
Ending balance 1750 6750 11750 16750

Cash sales are calculated as 0.75 * that month sales and collections are taken as 0.25 * previous month sales. Disbursements are made in the month they were incurred, since there no other specific indication in the question.

Answers

1) The total cash receipts for April are __= 10000

75% of April sales + 25% of March sales = 75% of 10000 + 25% of 10000 = 10000

2) The net cash flow for February is_________. - 1250

Net cash flow = cash receipts - cash disbursements

= ( 75% * 6000 + 25% * 5000 ) - 7000 = - 1250

3) The firm has a negative net cash flow in the month(s) of ________. February

4) The ending cash balance for March is ________. 6750

5) The ending cash balance for February is ________1750

6) At the end of May, the firm has an ending cash balance of ________ 16750

7) The firm has a total financing requirement of _____Zero___ for the period from February through May

Since there is no negative ending balance in any of the months

8) If a pro forma balance sheet dated at the end of May was prepared from the information presented, the marketable securities would total ________ 16750

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

The financial analyst at Medupe Company has prepared the following sales and cash disbursement estimates (in...
The financial analyst at Medupe Company has prepared the following sales and cash disbursement estimates (in thousand rand) for the period February to June of the current year February March April May June Sale 5000 6000 4000 2000 2000 Cash disbursement 4000 4000 6000 5000 3000 Historically Medupe Company has had 30% of sales being for cash. Of the credit sales, 70% are collected one month after the sale, and the remaining 30% are collected two months after the sale....
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of the year as follows: April 35,000; May, 38,000; June 40,000; July, 39,000; and August 38,000. The ending inventory of finished units for each month is to be maintained at 25% of next month's estimated sales. On April 1, there were 12,000 units on hand. a. prepare a production budget (in units) for the first four months of the period. Rounds amounts to the nearest...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of...
Jupiter Company's budget for coming year estimates monthly sales in units for first five months of the year as follows: April 35,000; May, 38,000; June 40,000; July, 39,000; and August 38,000. The ending inventory of finished units for each month is to be maintained at 25% of next month's estimated sales. On April 1, there were 12,000 units on hand. a. prepare a production budget (in units) for the first four months of the period. Rounds amounts to the nearest...
Wildcat Inc has estimates sales (in millions) for the next four months as follows: January: $230...
Wildcat Inc has estimates sales (in millions) for the next four months as follows: January: $230 February: $195 March: $270 April: $290 Gross sales in November were $250, in December were $200, and May are projected at $250 million. Wildcat has a 60-day collection period. Wildcat’s purchases from suppliers in a month are equal to 55 percent of the next month’s forecasted sales, and suppliers are normally paid in 30 days. Wages, taxes, and other expenses run about 30 percent...
Wheat Inc. has forecast its sales for the coming months as follows: Standard Units Deluxe Units...
Wheat Inc. has forecast its sales for the coming months as follows: Standard Units Deluxe Units April 110 70 May 126 87 June 143 94 July 160 108 Wheat maintains finished goods inventory equal to 30% of the next month’s sales requirements. April 1 inventories were 33 standard units and 21 deluxe. Required: Prepare a production schedule for April through June. (Round your answers to the nearest whole number and use rounded values for your intermediate calculations.)
A financial analyst has been following Davis Inc., a new high-tech firm. He estimates that the...
A financial analyst has been following Davis Inc., a new high-tech firm. He estimates that the current risk-free rate (rF) is 6.25%, the market risk premium (rM - rF) is 5%, and the firm’s beta is 1.75. The current dividend just paid (D0) is $1.00. The analyst estimates that the company’s dividend will grow at a rate of 25% this year, 20% next year, and 15% the following year. After three years the dividend is expected to grow at a...
A financial analyst has been following Davis Inc., a new high-tech firm. He estimates that the...
A financial analyst has been following Davis Inc., a new high-tech firm. He estimates that the current risk-free rate (rF) is 6.25%, the market risk premium (rM - rF) is 5%, and the firm’s beta is 1.75. The current dividend just paid (D0) is $1.00. The analyst estimates that the company’s dividend will grow at a rate of 25% this year, 20% next year, and 15% the following year. After three years the dividend is expected to grow at a...
An analyst has compiled the following information regarding Rubsam, Inc. Liabilities at year - end €...
An analyst has compiled the following information regarding Rubsam, Inc. Liabilities at year - end € 1,000 Contributed capital at year - end €500 Beginning retained earnings € 600 Revenue during the year € 5,000 Expenses during the year € 4,300 There have been no distributions to owners. The analyst ’ s most likely estimate of total assets at year - end should be closest to (1 Point) € 2,100. € 2,300 € 2,800 3.On 30 April 2006, Pinto Products...
14 Kyoto, Inc. predicts the following sales in units for the coming four months: April May...
14 Kyoto, Inc. predicts the following sales in units for the coming four months: April May June July Sales in units.......... 240 280 300 240 Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires four pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should...
 Maris​ Brothers, Inc., needs a cash disbursement schedule for the months of​ April, May, and June....
 Maris​ Brothers, Inc., needs a cash disbursement schedule for the months of​ April, May, and June. Use the format given here and the following information in its preparation.​ Sales: February $514,000​; March $489,000​; April $550,000​; May $586,000​; June $663,000​; July $668,000​Purchases: Purchases are calculated as 57% of the next​ month's sales, 11% of purchases are made in​ cash, 46% of purchases are paid for 1 month after​ purchase, and the remaining 43% of purchases are paid for 2 months after...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT