MGFD70H3 Final: MGFD70H3_Review_ShortTermFinance+and+Planning
Document Summary
Review problem on short term finance & planning (cash budget) Neil garcia & rahat godil limited (g&g) has estimated sales (in millions) for the next 4 quarters as: Sales in the first quarter of the year after this one are projected at . Accounts receivables at the beginning of the year were . G&g"s purchases from the suppliers in a quarter are equal to 55% of the next quarter"s forecasted sales, and suppliers are normally paid in 30 days. Wages, taxes, and other expenses run about 24% of sales. G&g plans a major capital outlay of in the 3rd quarter. G&g started the year with cash balance and wishes to maintain a minimum balance: complete a cash budget for g&g by filling in the following: Prepare a short term financial plan by filling in the following schedule.
