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 the loan whenever there is a surplus and borrow when there is a deficit.
The attached spreadsheet shows revenues( sales), expenses, capital expenditures, and other expenses for Precision Machines’ next six months. Using the information given on the spreadsheet, prepare a cash budget for January through June and determine the cash surplus, deficit, and the financing needs of the company.
Note: There are two parts to this learning team assignment; Part 2 will be completed in Week 5.
Review the Learning Team Assignment due in Week 5. Create an outline for the essay.
Develop a 700-word annotated bibliography using at least 3 resources.
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