The Kingsman Company historically has had 25 percent cash sales with the remainder paid within one month. Each month's purchases are equal to 75 percent of the next month's sales forecast; suppliers are paid one month after the purchase. Salary expenses are RM50,000 a month, except in January, when bonuses equal to 1 percent of the previous year's sales are paid out. Interest on a bond issue of RM10,000 is due in March. Overhead and utilities are expected to be RM25,000 monthly. Dividends of RM45,000 are to be paid in March. Kingsman' RM200,000. Kingsman's estimated sales for January RM200,000; March - RM250,000 and April - RM300,000. n's last year (2017) sales totaled RM2 million; December sales were are RM100,000; February - Required: What are Kingsman's expected monthly cash inflows during January through April? а. b. What are Kingsman's expected monthly cash outflows during January through April? Determine Kingsman's monthly cash budget for January through April. Assume a minimum desired cash balance of RM40,000 and an ending December cash balance of RM50,000. с.

The Kingsman Company historically has had 25 percent cash sales with the remainder paid within one month. Each month's purchases are equal to 75 percent of the next month's sales forecast; suppliers are paid one month after the purchase. Salary expenses are RM50,000 a month, except in January, when bonuses equal to 1 percent of the previous year's sales are paid out. Interest on a bond issue of RM10,000 is due in March. Overhead and utilities are expected to be RM25,000 monthly. Dividends of RM45,000 are to be paid in March. Kingsman' RM200,000. Kingsman's estimated sales for January RM200,000; March - RM250,000 and April - RM300,000. n's last year (2017) sales totaled RM2 million; December sales were are RM100,000; February - Required: What are Kingsman's expected monthly cash inflows during January through April? а. b. What are Kingsman's expected monthly cash outflows during January through April? Determine Kingsman's monthly cash budget for January through April. Assume a minimum desired cash balance of RM40,000 and an ending December cash balance of RM50,000. с.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 1PROB

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