Cash Budgeting and Financial Forecasting
Not what you're looking for?
Please address the 17 questions in the case study review and evaluate the case, identifying the decisions to be made pertaining to financial forecasting.
Determine quantitative and qualitative factors pertaining to financial forecasting.
Conclude findings pertaining to a financial forecasting case and provide recommendations for the case at hand.
Purchase this Solution
Solution Summary
The expert examines cash budgeting and financial forecasting. Quantitative and qualitative factors pertaining to financial forecasting is examined.
Solution Preview
If we look at the cash surplus and loan requirement data we can find that the maximum monthly cash shortfall of $60,750, occurs in the month of June and the maximum funds that the clinic require is $99,000 occurs in the month of February. We can find net projected cash gains in the month of March, April, and May, and the cumulative gain of these months is sufficient to retire the loan during the month of April. But a net cash loss is forecasted for the month of June means that an extension of the budget is required for the entire year.
Please look at the excel sheet for the data.
We have,
Monthly interest on line of credit=0.667%
And,
Monthly Interest on temporary investment of excess cash=0.333%
Also,
Cash at beginning=$50,000
January February March April May June
Surplus Cash or total loan outstanding -$48,417 -$98,844 -$23,686 $1,43,847 $1,69,493 $1,08,178
As we know that the clinic has $50,000 balance at ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
Recent Feedback
- "I've posted a similar question for another course. It's post 657940, and it's a practice problem that I'd like to use for the final exam. Your help will be greatly appreciated. "
- "thank you!"
- "Thank you again Jayant. You are super fast. "
- "Thank you Jayant. You are appreciated. "
- "Again, thank you Jayant. You are wonderful. "
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.