This paper circulates around the core theme of Wang does not plan to issue stock together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
ACCT504 Case Study 3
(Learning Objective 5: Construct and use a cash budget) Nathan
Farmer, chief fi 1 answer below » ACCT504 Case Study 3 (Learning Objective 5: Construct and use a cash budget) Nathan
Farmer, chief financial officer of Wang Appliance Store, is
responsible for the companyA????1s budgeting process. FarmerA????1s staff is
preparing the Wang cash budget for 2014. A key input to the
budgeting process is last yearA????1s statement of cash flows, which
follows (amounts in thousands): Wang Appliance Store Statement of Cash Flows 2013 (in thousands) View complete question » ACCT504 Case Study 3 (Learning Objective 5: Construct and use a cash budget) Nathan
Farmer, chief financial officer of Wang Appliance Store, is
responsible for the companyA????1s budgeting process. FarmerA????1s staff is
preparing the Wang cash budget for 2014. A key input to the
budgeting process is last yearA????1s 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 $51,000 Interest Received 500 Purchase of inventory (36,000) Operating expenses (10,200) Net cash provided by operating activities 5,300 Cash Flows from Investing Activities Purchase of equipment (3,500) Purchase of investments (500) Sale of investments 1,000 Net cash used for investing
activities (3,000 ) Cash Flows from Financing Activities Payment of long term debt (400) Issuance of Stock 2,000 Payment of cash dividends (500) Net cash provided by financing
activities 1,000 Cash Increase (decrease) in Cash 3,300 Cash, beginning of year
2,900 Cash, end of year 5,900 ? Requirements 1. Prepare the Wang cash budget for 2014. Date
the budget simply A????12014A????1 and denote the beginning and ending cash
balances as A????1beginningA????1 and A????1ending.A????1 Assume the company expects
2014 to be the same as 2013, but with the following changes: a. In 2014, the company expects a 20% increase
in collections from customers and a 30% increase in purchases of
inventory. b. There will be no sales of investments in
2014. c. Wang does not plan to issue stock in
2014. d. Wang plans to end the year with a cash
balance of $5,550. View less » Aug 04 2015 11:58 PM
