Expert answer:Need accounting help to Construct and use a cash b
Answer & Explanation:THe beginning cash balance is 6300.Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year’s statement of cash flows, which follows (amounts in thousands): Wang Appliance Store Statement of Cash Flows 2013 (in thousands)Cash Flows from Operating ActivitiesCollections from customers $51,000Interest Received 500Purchase of inventory (36,000)Operating expenses (10,200)Net cash provided by operating activities 5,300Cash Flows from Investing ActivitiesPurchase of equipment (3,500)Purchase of investments (500)Sale of investments 1,000Net cash used for investing activities (3,000 ) Cash Flows from Financing ActivitiesPayment of long term debt (400)Issuance of Stock 2,000Payment of cash dividends (500)Net cash provided by financing activities 1,100 Cash Increase (decrease) in Cash 3,400Cash, beginning of year 2,900Cash, end of year 6,300▸ Requirements•1. Prepare the Wang cash budget for 2014. Date the budget simply “2014” and denote the beginning and ending cash balances as “beginning” and “ending.” Assume the company expects 2014 to be the same as 2013, but with the following changes: oa. In 2014, the company expects a 20% increase in collections from customers and a 30% increase in purchases of inventory. ob. There will be no sales of investments in 2014. oc. Wang does not plan to issue stock in 2014. od. Wang plans to end the year with a cash balance of $5,550. USE TEMPLATE ATTACHEDcase_study_help.docxcase_study_help.docxacct504_case_study_3_cash_budget_template.xlsx
case_study_help.docx
case_study_help.docx
acct504_case_study_3_cash_budget_template.xlsx
Unformatted Attachment Preview
(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer
of Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff is
preparing the Wang cash budget for 2014. A key input to the budgeting process is last year’s
statement of cash flows, which follows (amounts in thousands):
Wang Appliance Store
Statement of Cash Flows
2013
(in thousands)
Cash Flows from Operating Activities
Collections from customers
Interest Received
Purchase of inventory
Operating expenses
Net cash provided by operating activities
Cash Flows from Investing Activities
Purchase of equipment
Purchase of investments
Sale of investments
Net cash used for investing activities
Cash Flows from Financing Activities
Payment of long term debt
Issuance of Stock
Payment of cash dividends
Net cash provided by financing activities
$51,000
500
(36,000)
(10,200)
5,300
(3,500)
(500)
1,000
(3,000 )
(400)
2,000
(500)
1,100
Cash
Increase (decrease) in Cash
Cash, beginning of year
Cash, end of year
3,400
2,900
6,300
▸ Requirements
•
1. Prepare the Wang cash budget for 2014. Date the budget simply “2014” and denote the
beginning and ending cash balances as “beginning” and “ending.” Assume the company
expects 2014 to be the same as 2013, but with the following changes:
o a. In 2014, the company expects a 20% increase in collections from customers
and a 30% increase in purchases of inventory.
o b. There will be no sales of investments in 2014.
o c. Wang does not plan to issue stock in 2014.
o d. Wang plans to end the year with a cash balance of $5,550.
(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer
of Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff is
preparing the Wang cash budget for 2014. A key input to the budgeting process is last year’s
statement of cash flows, which follows (amounts in thousands):
Wang Appliance Store
Statement of Cash Flows
2013
(in thousands)
Cash Flows from Operating Activities
Collections from customers
Interest Received
Purchase of inventory
Operating expenses
Net cash provided by operating activities
Cash Flows from Investing Activities
Purchase of equipment
Purchase of investments
Sale of investments
Net cash used for investing activities
Cash Flows from Financing Activities
Payment of long term debt
Issuance of Stock
Payment of cash dividends
Net cash provided by financing activities
$51,000
500
(36,000)
(10,200)
5,300
(3,500)
(500)
1,000
(3,000 )
(400)
2,000
(500)
1,100
Cash
Increase (decrease) in Cash
Cash, beginning of year
Cash, end of year
3,400
2,900
6,300
▸ Requirements
•
1. Prepare the Wang cash budget for 2014. Date the budget simply “2014” and denote the
beginning and ending cash balances as “beginning” and “ending.” Assume the company
expects 2014 to be the same as 2013, but with the following changes:
o a. In 2014, the company expects a 20% increase in collections from customers
and a 30% increase in purchases of inventory.
o b. There will be no sales of investments in 2014.
o c. Wang does not plan to issue stock in 2014.
o d. Wang plans to end the year with a cash balance of $5,550.
CASE STUDY 3—Cash Budget Template
Wang Appliance Store
Cash Budget
For 2014
Month
Cash balance
Add: Receipts
Collections from customers
Receipt of Interest
Total Available Cash
0
Budgeted Cash Payments
Less: Disbursements
Purchases of inventory
Operating expenses
Purchase of equipment
Purchase of Investments
Payment of Dividends
Payment of long-term Debt
Total disbursements
Cash available (needed) before new financing
–
Budgeted cash balance ending
Cash available for additional investments or (new financing needed)
–
…
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades