ADAK STEEL budget info: 01 02 03 04 $2,500,000 $2,000,000 $2,200,000 $2,800,000 $500,000 $500,000 $600,000 $700,000 $800,000 $800,000 $900,000 $1,000,000 $400,000 $400,000 $400,000 $400,000 Sales on account Purchases of material on account Payroll Miscellaneous Cash collections of sales on account: 70% current Quarter, 4%-never Sales in previous year: 3d Q-$1,800,000 Bond interest: Bond Principal: 20% following Q 4th Q-$2,400,000 Material Purchases: Paid ½ in current Q: % in next Q Purchases in 4 Q of previous year: $600,000 All other items (payroll, miscellaneous) are paid in current month. Non-operating cash outlays: Dividends: 6% second following Q $90,000 every Q. $60,000 on June 30 and $40,000 on December 31. $1,000,000 on June 30. $120,000 Annual interest rate: 8% Beginning Cash Balance, Jan. 1: Minimum Balance: $100,000 REQUIRED: Prepare a Cash Budget

ADAK STEEL budget info: 01 02 03 04 $2,500,000 $2,000,000 $2,200,000 $2,800,000 $500,000 $500,000 $600,000 $700,000 $800,000 $800,000 $900,000 $1,000,000 $400,000 $400,000 $400,000 $400,000 Sales on account Purchases of material on account Payroll Miscellaneous Cash collections of sales on account: 70% current Quarter, 4%-never Sales in previous year: 3d Q-$1,800,000 Bond interest: Bond Principal: 20% following Q 4th Q-$2,400,000 Material Purchases: Paid ½ in current Q: % in next Q Purchases in 4 Q of previous year: $600,000 All other items (payroll, miscellaneous) are paid in current month. Non-operating cash outlays: Dividends: 6% second following Q $90,000 every Q. $60,000 on June 30 and $40,000 on December 31. $1,000,000 on June 30. $120,000 Annual interest rate: 8% Beginning Cash Balance, Jan. 1: Minimum Balance: $100,000 REQUIRED: Prepare a Cash Budget

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter16: Financial Planning And Forecasting

Section: Chapter Questions

Problem 13P

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