You are given the following sample of daily net cash flows?…
You are given the following sample of daily net cash flows? Day NCF 1 $50,000 2 $65,000 3 $75,000 4 $80,000 5 a) what will be your forecast in period 5, using a 2-day moving average b) what will be your forecast in period 5, using a 3-day moving average c) If the actual cash flow on day 5 is 75,000, which method provides the better forecast? Explain
Read DetailsDevelop a cash budget for the next three months using the in…
Develop a cash budget for the next three months using the information provided below. Monthly sales forecasts are $150,000, $180,000, and $60,000 (June, July, August) The current month’s sales are $120,000 (May) Cost of goods sold equals 65% of sales Lease payment= 22,000 per month The company is required to pay an installment of $120,000 for a note (debt) The cash position at the end of the current month is $80,000 The target cash balance is $50,000 Assume that 60% of sales are collected in the month sold and the remaining collected in the following month.
Read Details(8 points) Problem 2 MUST SHOW YOUR WORK A seller is conside…
(8 points) Problem 2 MUST SHOW YOUR WORK A seller is considering extending trade credit to an existing customer who buys on cash terms. The customer has just placed a sales order (cash terms) for immediate delivery of 300 units at a sales price per unit of $12. The customer states that they will increase their sales order by 20% if they receive a 90-day credit period. Variable costs are $3 per unit and involve an immediate cash outflow. If the seller has an annual opportunity cost rate of 12%, what is the NPV of extending credit to the customer?
Read Details