Words of Wisdom:

"I wanna tell him, Just Shut Up and Kiss Me, Hottie" - Solangeu

Acct 504 Case Study 3

  • Date Submitted: 03/31/2016 12:23 AM
  • Flesch-Kincaid Score: 53.2 
  • Words: 284
  • Essay Grade: no grades
  • Report this Essay
ACCT 504 Case Study 3

(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last year’s statement of cash flows, which follows (amounts in thousands):
Wang Appliance Store
Statement of Cash Flows
(in thousands)

Cash Flows from Operating Activities
Collections from customers                                                   $51,000
Interest Received                                                                           500
Purchase of inventory                                                             (36,000)
Operating expenses                                                                 (10,200)
Net cash provided by operating activities                 5,300

Cash Flows from Investing Activities
Purchase of equipment                                                               (3,500)
Purchase of investments                                                               (500)
Sale of investments                                                                       1,000
Net cash used for investing activities                             (3,000)

Cash Flows from Financing Activities
Payment of long term debt                                                             (400)
Issuance of Stock                                                                           2,000
Payment of cash dividends                                                             (500)
Net cash provided by financing activities                           1,100

Increase (decrease) in Cash                           3,400
Cash, beginning of year                                               2,900
Cash, end of year6,300

• 1. Prepare the Wang cash budget...


Express your owns thoughts and ideas on this essay by writing a grade and/or critique.

  1. No comments