Which of the following would NOT be found in a cash budget? A) interest expense B) taxes C) depreciation D) cash sales
LPD Logistics,Inc.'s projected sales for the first six months of 2010 are given below. 20% of sales are collected in the month of the sale,75% are collected in the month following the sale,and 5% are written off as uncollectible.Cost of goods sold is 80% of sales.Purchases are made the month prior to the sales and are paid during the month the purchases are made (i.e.goods sold in March are bought and paid for in February).Total other cash expenses are $35,000/month.The company's cash balance as of February 1,2010 will be $30,000.Excess cash will be used to retire short-term borrowing (if any).LPD has no short term borrowing as of February 28,2010.Assume that the interest rate on short-term borrowing is 1% per month.The company must have a minimum cash balance of $20,000 at the beginning of each month.What is LPD's projected cash balance as of April 1,2010? A) ($48,600) B) ($58,036) C) $14,238 D) $21,400
Is it possible for the cash budget and the pro forma income statement to have different results? A) yes, because revenues and expenses included in each statement are different B) yes, because revenues and expenses are accounted for over different time periods C) no, because they contain the same variables, while just using different formats D) no, because the cash budget and the pro forma income statement provide forecasts for the same time period
The cash budget consists of all the following factors EXCEPT A) cash receipts. B) cash disbursements. C) new financing needed. D) net income.