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 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. Format your paper consistent with APA guidelines. Click the Assignment Files tab to submit your assignment.
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