Nichols Co

question 59

Essay

Nichols Co.has the following information for the second quarter of 2012:
Cost of Goods Sold is 75% of Sales; all cash
Operating expenses is 10% of Sales; all cash
Income taxes paid:
The minimum cash balance for any month is $10,000.
Prepare a cash budget for each month in the second quarter of 2012,showing any excess cash or any financing needed.Any interest on the financing will be deferred until the fiscal year end in December.

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Definitions:

Overall Strategy

A comprehensive plan that outlines an organization's major goals and how it plans to achieve them over a long period.

Primary Activities

Activities in the value chain that are directly involved in the creation of a product or service, transformation, delivery, and after-sales service.

Information Management

The process of collecting, storing, managing, and distributing information in an effective and secure manner.

Process Improvement

The proactive task of identifying, analyzing, and improving upon existing business processes within an organization to optimize performance or meet new quotas or standards.