One Excel file submitted; please attach answers in an Excel file
All calculations completed using Excel formula functions; all calculations and formulas must be shown
Prepare a comprehensive cash budget: (file is attached)
Use the format as your guide; Format has to be set up exactly as it is shown in the attached document: (format is attached)
Check figures: Cash receipts (collections) balance Aug: $20,500; Cash disbursements (all expenses) July $20,400
In addition to the preparation of the three month cash budget, provide the following descriptive analysis by addressing each of the following items fully:
1. Does the cash budget based on the given parameters provide the firm with the liquidity in needs in meeting operations for the quarter (and why)?
2.The CFO wants to know what is the impact of increasing the minimum monthly balance to $7,000. Provide a short but detailed response to the CFO on the impact of this change. Or course the CFO will expect to see the numerical values that support the response.
3 What is the impact of interest rate changes on the a) the budget as proposed, and b) the CFOs request for higher minimum cash balance?