ACC504 Case Study 3
KAPLAN BU224 ALL UNIT DISCUSSIONS [ UNIT 1 TO 9 ]
July 10, 2018STATS Unit 2 Module 2 Assignment 1 – Working with Descriptive Statistics
July 10, 2018Case Study 3
P4-55A
(Learning Objective 5: Construct and
use a cash budget) Nathan Farmer, chief financial officer of Bosworth Wireless,
is responsible for the companyâs budgeting process. Farmerâs staff is preparing
the Bosworth cash budget for 2013. A key input to the budgeting process is last
yearâs state.jpg”>ment
of cash flows, which follows (amounts in thousands):
?
Requirements
1. Prepare the Bosworth Wireless cash budget for 2013.
Date the budget simply â2013â and denote the beginning and ending cash
balances as âbeginningâ and âending.â Assume the company expects 2013 to
be the same as 2012, but with the following changes:a. In 2013, the company expects a 15% increase in
collections from customers and a 24% increase in purchases of inventory.b. There will be no sales of investments in 2013.c. Bosworth plans to issue no stock in 2013.d. Bosworth plans to end the year with a cash balance of
$3,550.