Need accounting help to Construct and use a cash budget

Dec 13th, 2015
Sigchi4life
Category:
Accounting
Price: $15 USD

Question description

THe beginning cash balance is 6300.

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: 

oa. In 2014, the company expects a 20% increase in collections from customers and a 30% increase in purchases of inventory. 

ob. There will be no sales of investments in 2014. 

oc. Wang does not plan to issue stock in 2014. 

od. Wang plans to end the year with a cash balance of $5,550. 

USE TEMPLATE ATTACHED

case_study_help.docx
case_study_help.docx
acct504_case_study_3_cash_budget_template.xlsx

Tutor Answer

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

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
darnay
Dec 5th, 2016
" The best tutor out there!!!! "
dontuwannaknow
Nov 26th, 2016
" Excellent work as always thanks so much "
SjSurvivor143
Nov 12th, 2016
" Thanks for the help. "
ddg82
Nov 3rd, 2016
" Thanks, good work "
tinytim47
Oct 21st, 2016
" Wow this is really good.... didn't expect it. Sweet!!!! "
jestin7
Oct 12th, 2016
" This tutor is great! "
mixedballz
Oct 7th, 2016
" excellent work as always thanks for the help "
lilmoe415
Sep 28th, 2016
" Thank you, Thank you, for top quality work, this is your guy!! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 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