The new owner of Bobâs Boats, Bob, just purchased the business and discovered that the prior owner did not have a plan for managing the current assets of the company. Bob has decided that the place to start is with a cash budget, using the template he used in his prior position..next.ecollege.com/pub/content/d0e07f15-72d9-4140-b864-761e90ea70c0/Template_M5A1.xls”>Bob has requested that you to complete the cash budget given the data that he has already retrieved from the companyâs records and from his own analysis.Table-1:Sales Forecast for the next 9 MonthsMonthSalesJanuary $ 162,000.00February $ 168,000.00March $ 324,000.00April $ 485,000.00May $ 648,000.00 June $ 325,000.00July $ 325,000.00August $ 80,000.00September $ 162,000.00Collections on receivables have historically been collected as follows and this pattern is expected to continue:12% in the Month of Sale60% in the month following the Sale28% in the Second Month after the SaleBob pays for the labor and materials in the month after they are incurred. Bob has also compiled the following information on expenses for the upcoming nine month period:Table-2:MonthLabor and Materials ExpenseAdministrative SalariesDepreciation ChargesIncome TaxesLease PaymentsMiscellaneous ExpensesJanuary $ 80,000.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00February $ 80,000.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00March $ 114,000.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00April $ 794,000.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00May $ 275,000.00 $ 25,000.00 $ 34,500.00 $ 58,500.00 $ 8,500.00 $ 3,000.00 June $ 210,500.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00July $ 146,000.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00August $ 80,000.00 $ 25,000.00 $ 34,500.00 $ 58,500.00 $ 8,500.00 $ 3,000.00September $ 81,000.00 $ 25,000.00 $ 34,500.00- $ 8,500.00 $ 3,000.00 Bob has also identified a cash payment of $175,000 upon completion of a new boat dock in July. As of March 1st, the company now has $125,000 in cash on hand and would like to maintain a minimum cash balance of $85,000 at all times.Required:Prepare a Schedule of Collections and Payments for the six month period beginning in March, using the template provided and the data above.Prepare a Schedule of Cash Gains and Losses by month for the six month period beginning in March, using the template provided and the data above.Prepare a Schedule of Cash Surplus or Shortages by month for the six month period beginning in March, using the template provided and the data above.Prepare a schedule of Net Cash Flow by month for the six month period beginning in March, using the template provided and the data above indicating the timing and amounts that must be borrowed or the amounts that can be re-invested or used in the firm.Based on the information in the reports you constructed above would you recommend any changes in the credit policy of the firm? If so, what would they be? Explain your answers.Assignment 1 Grading CriteriaMaximum PointsCorrectly constructed a Schedule of Collections and Payments for the company during the period indicated.48Correctly constructed a Schedule of Cash Gains and Shortages for the company during the period indicated.48Correctly constructed a Schedule of Cash Surplus or Shortages for the company during the period indicated.48Correctly constructed a Schedule of Net Cash Flow for the company during the period indicated.48Correctly summarized the findings and identified any needed changes to the credit policy of the firm.44Written Components:Organization (12)usage and mechanics (12)APA elements (16) Style (4)64Total:300
Submit a continuous monitoring plan laying out the foundation for continuously monitoring the organization against malicious activities and intentional and unintentional threats. This milestone also focuses on work setting techniques and work planning pol
Submit a continuous monitoring plan laying out the foundation for continuously monitoring the organization against malicious activities and intentional and unintentional threats. This milestone also focuses on work setting techniques and work planning policies to help employees improve their stress anxiety, fatigue, and boredom. As part of the planned solution, you will propose to mitigate […]
