Please don't give image based answer Datem Inc. is planning to request a line of credit from its bank. The bank requires them to submit a cash budget. Their Creditand Collection Department estimated collections of sales as follows: collected within the month of sale, 20%; collected themonth following the sale, 80%. Payments for labor and raw materials are typically made during the month following themonth in which these are incurred. The Production Department estimated total labor and raw material costs for each monthas follows: (in P '000) May ¹95 290 June 290 July 440 June 600 Aug 980 Sept 600 Oct 560 Nov 480 Dec 190 The MarketingDepartment has drawn the following sales forecasts for parts of 1995 and 1996: (in P'000) May '95 July Aug Sept Oct 12001,800 2,400 1,200 Nov Dec 1,200 300 Jan ¹96 150 600 Other projections include: general, selling and administrative expensewill amount to approximately P112, 5000 a month; lease payments under long-term lease contracts will be P87,500 a month;depreciation charges will P150,000 a month; miscellaneous expense will be P111,500 a month; income tax of P450,000 willbe due in June, September and December, and a progress payment of P1,200,000 on a new database server must be paid inSeptember. Cash on hand on June 30 will amount to P225,000, and a minimum cash balance of P210,000 must bemaintained throughout the cash budget period. Cash at beginning of June is P676,500. How much cash can potentially beinvested in November?Datem Inc. is planning to request a line of credit from its bank. The bank requires them to submit a cash budget. Their Credit and Collection Department estimateucollections of sales as follows: collected within the month of sale, 20%; collected the month following the sale, 80%Payments for labor and raw materials are typically made during the month following the month in which these are incurred. The Production Department estimated totallabor and raw material costs for each month as follows: (in P '000)May ¹95 June290290Dec190AugSept OctNov440980600560480The Marketing Department has drawn the following sales forecasts for parts of 1995 and 1996: (in P'000)May 95 JuneJulySept OctAug1200 1.800 2.400 1.200Nov Dec1.200 300Jan 96150600600Other projections include: general, selling and adininistrative expense will amount to approximately P112, 5000 a month; lease payments under long-term lease contractswill be P87,500 a month; depreciation charges will P150,000 a month; miscellaneous expense will be P111,500 a month; income tax of P450,000 will be due in June,September and December, and a progress payment of P1,200,000 on a new database server must be paid in September.Cash on hand on June 30 will amount to P225.000, and a minimum cash balance of P210.000 must be maintained throughout the cash budget period: Cash at beginning ofJune is P676,500How much cash can potentially be invested in November?

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Datem Inc. is planning to request a line of credit from its bank. The bank requires them to submit a cash budget. Their Credit and Collection Department stillateu collections of sales as follows: collected within the month of sale, 20%; collected the month following the sale, 80% Payments for labor and raw materials are typically made during the month following the month in which these are incurred. The Production Department estimated total labor and raw material costs for each month as follows: (in P000) Aug Nov 980 480 The Marketing Department has drawn the following sales forecasts for parts of 1995 and 1996: (in P'000) May '95 June July Aug Sept Oct 1200 1,800 2.400 1.200 600 600 May 95 June 290 290 July 440 Sept 600 Oct 560 Dec 190 Nov Dec 1,200 300 Jan '96 150 Other projections include: general, selling and administrative expense will amount to approximately P112, 5000 a month; lease payments under long-term lease contracts will be P87,500 a month depreciation charges will P150,000 a month; miscellaneous expense will be P111,500 a month; income tax of P450,000 will be due in June, September and December, and a progress payment of P1,200,000 on a new database server must be paid in September. Cash on hand on June 30 will amount to P225,000, and a minimum cash balance of P210.000 must be maintained throughout the cash budget period. Cash at beginning of June is P676,500 How much cash can potentially be invested in November?

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...