Multliple cash budgots-Scenario analysis Brownstein, Inc, expects sales of 595,0
ID: 1172743 • Letter: M
Question
Multliple cash budgots-Scenario analysis Brownstein, Inc, expects sales of 595,000 during each of the next 3 months. t sales Brownsion opodstoralraux payment of $10,000nhe neut month and a S20000 purchweoffand Brownatein, upects sales of $85,00 nt next 3 moniths wi make morthly purchs of ,000 dring pis time Wages and salaries are $17,000 per month phu e% of of fxed assets in the seoond month and to receive $7,000 in cash from the sale of an asset in the third month. All sales and purchases are moe nemoeier or ossh. Beginning cash and the minimum cesh balance ane assumed to be zero a Construct a cash budget for the next 3 monthe b. Brownslein is unsure of the saos levels, but all other figures are certain, if the mont pessimistic sales figune is $83,000 per month and te most optimistic in $115,000 per month, what are the monthly minimum and maximum ending cash belances that the frm can expect for each oll the 1-month periods? e Briely dsouss how the financoial manager can une he dala in parts a and b. to plan for financing needs a Construct a cash budget for the next 3 months Complete the Brownstein, Inc's cash budget for the 1st month below (Round to the nearest $000) Brownstein, Ine Cash Budget (5000) 1st Month Most Skely scenario Sales Sale of asset Purchases Wages and salaries 10000 Purchase of fxed assel Net cash fow Ads Beginning cash Ending cash Complete the Brownsein, Inc 's cash budget for the 2nd month below (Round to the reanest 5000) Enter any number in the edit fields and then continue to the next questionExplanation / Answer
a.Cash Budget - Ist Month
(7700)
Note: Wages and Salaries = 17,000 + 6% of 95000 = 22,700
Most Likely Scenario
2nd Month
Sales
95,000
Sale of Asset
0
Purchases
61,000
Wages and Salaries
22,700
Taxes
0
Purchase of Fixed Asset
20,000
Net Cash flow
(8700)
Add: Beginning Cash
(7700)
Ending Cash
(16,400)
Most Likely Scenario
3rd Month
Sales
95,000
Sale of Asset
7,000
Purchases
61,000
Wages and Salaries
22,700
Taxes
0
Purchase of Fixed Asset
0
Net Cash flow
18,300
Add: Beginning Cash
(16400)
Ending Cash
1,900
Most Likely Scenario Ist Month Sales 95,000 Sale of Asset 0 Purchases 61,000 Wages and Salaries 22,700 Taxes 19,000 Purchase of Fixed Asset 0 Net Cash flow(7700)
Add: Beginning Cash 0 Ending Cash (7700)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.