FIN 370 Week 3 Team Assignment Precision Machines Part 1 ( annotated bibliography and excel calculation )
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FIN 370 Week 3 Team Assignment Precision Machines Part 1 ( annotated bibliography and excel calculation )
For more course tutorials visit www . tutorialrank . com
This Tutorial contains both annonated bibliography and excel file
FIN 370 Week 3 Team Assignment Precision Machines Part 1
Precision Machines is preparing a financial plan for the next six months to determine the financial needs of the company . The historical analysis of the company ’ s sales shows that the company ’ s total sales are 30 % cash sales and 70 % credit sales . Further analysis of credit sales shows that the company receives 50 % of the credit sales one month after the sale and the remaining 50 % in the second month after the sale . This means the cash collections from sales are 30 % in the first month of the sale , 35 % in the second month , and 35 % in the third month .
The materials purchased by the company amounts to 50 % of the sales for the month . The company pays for the purchases one month after the initial purchase . The company likes to maintain a cash balance of $ 5,000 . The cost of borrowing is 10 %. The company plans to pay off