er7787
Apr 20, 2013, 04:32 PM
Sales unit Q1 (40,000)
Selling Price is 100.00 per unit
My total sales are 4,000,00
Beginning balance 25,000
Collections from customers: quarter of sale 80% is 3,200,000
I no my next quarter sale and not collectible will count in quarter 2-4
My cash that I have available is 3,225,000
cost of books/unit 50.00
My total cost of book sold is 2,000,000
Less disbursements:
Payment on books purchased on quarter of sale is 75%= 1,500,000 and on the second quarter after sale is 25%= 500,000
Selling and expenses 2,000,000
total disbursements 4,000,000
excess (deficiency) of cash available over disbursements (775,000)
Now, when it comes to borrowing I am stuck... I know I need to have a desired ending cash balance, at least 100,000
Any help will be greatly appreciated,thanks in advance.
Selling Price is 100.00 per unit
My total sales are 4,000,00
Beginning balance 25,000
Collections from customers: quarter of sale 80% is 3,200,000
I no my next quarter sale and not collectible will count in quarter 2-4
My cash that I have available is 3,225,000
cost of books/unit 50.00
My total cost of book sold is 2,000,000
Less disbursements:
Payment on books purchased on quarter of sale is 75%= 1,500,000 and on the second quarter after sale is 25%= 500,000
Selling and expenses 2,000,000
total disbursements 4,000,000
excess (deficiency) of cash available over disbursements (775,000)
Now, when it comes to borrowing I am stuck... I know I need to have a desired ending cash balance, at least 100,000
Any help will be greatly appreciated,thanks in advance.