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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