Using the following information based on expected sales to forecast the monthly cash collections, accounts receivable balance, monthly cash disbursements, net cash flows, and cash surplus / deficit at the end of each month in the third quarter of 2018 (July - September 2018). Do not allow your firm to have a cash balance below the minimum cash balance and only borrow what you need.
a. In June 2018 credit sales were $50,000.
b. The firm’s total sales in 2017 were $1,825,000. The firm's accounts receivable balance on December 31, 2016 was $45,000. The firm's accounts receivable balance on December 31, 2017 was $75,000.
c. Accounts payable are 50% of sales
d. Operating expenses are 15% of sales
e. The firm plans to purchase equipment in July costing $250,000.
f. Beginning Cash Balance = $25,000
g. Minimum Cash Balance = $5,000
h. Assume there is an annual interest rate of 18% on short term debt and that the firm starts with no short term borrowing.
i. Sales are expected to be $60,000 for July 2018, $400,000 for August 2018, and $100,000 for September 2018.
For this question i need to know:
Firm's Accounts Receivable Turnover
Firm's Accounts Receivable Period
Firm's accounts receivable balance at the beginning of July 2018
Firm's total cash collections for the month of July 2018?
Firm's total cash collections for the month of August 2018?
Firm's total cash collections for the month of September 2018?
Firm's total cash disbursements for the month of July 2018?
Firm's total cash disbursements for the month of August 2018?
Firm's total cash dispursements for the month of September 2018?
Firm's short term debt at the end of July 2018?
Firm's short term debt at the end of August 2018?
Firm's short term debt at the end of September 2018?