I need help with an accounting assignment

Dec 3rd, 2015
Steve1995
Category:
Accounting
Price: $30 USD

Question description

ACCT504 Case Study 3

(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year’s statement of cash flows, which follows (amounts in thousands):

  Wang Appliance Store

    Statement of Cash Flows

  2013 

  (in thousands)

Cash Flows from Operating Activities

Collections from customers  $51,000

Interest Received  500

Purchase of inventory  (36,000)

Operating expenses  (10,200)

  Net cash provided by operating activities  5,300

Cash Flows from Investing Activities

  Purchase of equipment  (3,500)

  Purchase of investments  (500)

  Sale of investments  1,000

  Net cash used for investing activities  (3,000

 

Cash Flows from Financing Activities

  Payment of long term debt  (400)

  Issuance of Stock  2,000

  Payment of cash dividends  (500)

  Net cash provided by financing activities  1,100 

Cash

Increase (decrease) in Cash  3,400

Cash, beginning of year    2,900

Cash, end of year  6,300

Requirements

  • 1. Prepare the Wang cash budget for 2014. Date the budget simply “2014” and denote the beginning and ending cash balances as “beginning” and “ending.” Assume the company expects 2014 to be the same as 2013, but with the following changes:
    • a. In 2014, the company expects a 20% increase in collections from customers and a 30% increase in purchases of inventory.
    • b. There will be no sales of investments in 2014.
    • c. Wang does not plan to issue stock in 2014.
    • d. Wang plans to end the year with a cash balance of $5,550.
PLEASE USE THE FILE BELOW TO ANSWER THE QUESTION IF MY BID IS ACCEPTED

copy_of_acct504_case_study_3_cash_budget_template_1.xlsx

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UCLA
PREMIUM TUTOR

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
pmallory
Dec 11th, 2016
" Totally impressed with results!! :-) "
mixedballz
Dec 2nd, 2016
" excellent work as always thanks for the help "
Five Star Tutor
Nov 26th, 2016
" Outstanding Job!!!! "
kiln82
Nov 18th, 2016
" awesome work thanks "
darnay
Nov 9th, 2016
" The best tutor out there!!!! "
likeplum4
Nov 5th, 2016
" Excellent work as usual "
kpcutie
Oct 13th, 2016
" Excellent job "
Joemoe
Oct 4th, 2016
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors