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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