Look at this financial statement info and let me know if it's correct. And
explain the calculations on how to arrive at the numbers to place in excel? Some of the formulas i don't understand how to put into excel.
So, explain yourself on the steps you take to do some of the problems.
The 2nd doc is the one I've been working on.
I maybe completely wrong with my answers but you can still view the original doc. Hopefully I'm not confusing anyone.Thanks
Read the following case study:
Precision Machines is preparing a financial plan for the next six months to determine the financial needs of the company. The historical analysis of the company's sales shows that the company's total sales are 30% cash sales and 70% credit sales. Further analysis of credit sales shows that the company receives 50% of the credit sales one month after the sale and the remaining 50% in the second month after the sale. This means the cash collections from sales are 30% in the first month of the sale, 35% in the second month, and 35% in the third month.
The materials purchased by the company amounts to 50% of the sales for the month. The company pays for the purchases one month after the initial purchase. The company likes to maintain a cash balance of $5,000. The cost of borrowing is 10%. The company plans to pay off the loan whenever there is a surplus and borrow when there is a deficit.
Attached are two excel files.
one is original.
Another is in working condition.
Attachment:- Fin.-excel (working).rar
Attachment:- original file.rar