ACC 252 Lecture Notes - Lecture 7: Cash Cash, European Route E77, Accounts Payable

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29 Aug 2016
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When what you have doesn"t cover what you owe. Preform sensitivity analysis to understand the impact of different assumptions. Page 326 - 327, e7-1: prepare a schedule of expected cash collections from sales. 20% of month"s sales = collected during that month. 70% of month"s sales = collected the following month. Remaining 10% of months sales = collected the second month following the sale. * basically looks the same as schedule of cash collections with words changed out. Page 328, e7-7: prepare the company"s cash budget. Total cash receipts and total cash disbursements = in textbook. Can borrow any amount at interest rate of 3% Can only borrow at the beginning of a quarter. Can only pay back at the end of a quarter. * usually taken from the schedule of cash collections. *** > ,000 financing can be repaid. * must account for deficiency of cash and minimum cash requirement.

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