CBD Computer Inc

question 30

Essay

CBD Computer Inc.is attempting to estimate its needs for funds during each of the months covering the third quarter of 20XX.Pertinent information is given below:
a.Past and estimated future sales for 20XX:
b.Rent expense is $2,500 per month.
c.A quarterly interest payment on $100,000 in 7% notes payable is to be paid during September,20XX.
d.Wages and salaries are estimated as follows:
Payments are made within the month in which the wages are earned.
e.Sixty percent of sales are for cash,with the remaining 40% collected in the month following the sale.
f.CBD pays 80% of the sales price for merchandise and makes payment in the same month in which the sales occur,although purchases are made in the month prior to the anticipated sales.
g.CBD plans to pay $7,500 in cash for a new forklift truck in July.
h.Short-term loans can be obtained at the end of each month at 13% annual interest with interest paid during each month for which the loan is outstanding.
i.CBD's ending cash balance for June 30,200X is $67,000:
the minimum balance the firm wishes to have in any month is $35,000.
Required:
Set up a cash budget for CBD for the quarter ended September 30,20XX.

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Definitions:

Leading by Values

Guiding and influencing others based on a shared set of ethical beliefs and principles that drive decision-making and actions.

Character

The mental and moral qualities distinctive to an individual.

Integrity

Completion, wholeness, and soundness; a quality of character requiring honesty and courage; a virtue necessary for trust; the most important quality desired in a leader. See values, honesty, and courage.

Adversity

Difficult or unfavorable conditions or situations that pose challenges to individuals or groups.