Case: Chester & Wayne
Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked for assistance with preparing cash-flow information for the last three months of this year. The selected accounts from an interim balance sheet dated September 30, have the following balances: Cash $142,100 Accounts payable $354,155 Marketable securities $200,000 Other payables $53,200 Accounts receivable $1,012,500 Inventories $150,388 Mr. Wayne, CFO, provided the following information based on experience and management policy. All sales are credit sales and are billed the last day of the month of sale. Customers paying within 10 days of the billing date may take a 2 percent cash discount.
…show more content…
Any excess amounts go first to repayment of short-term borrowings and then to investment in marketable securities. When cash is needed to reach the minimum balance, the company policy is to sell marketable securities before borrowing.
Cash Budget for each Month of the Fourth Quarter
Chester & Wayne October November December Total
Cash budget
Cash collection
40% after 2% discount $308,700 $324,106 $340,334 $973,140
25% without discount $196,875 $206,700 $217,050 $620,625
30% in next month $225,000 $236,250 $206,700 $667,950
Renting of warehouse $24,000 $24,000
Sell of marketable securities $7,351 $192,649 $200,000
Bank borrowing $29,750 $53,393 $83,143
Total collection $761,926 $989,455 $817,477 $2,568,858 less payments
60% of purchases and other $429,871 $452,875 $470,561 $1,353,307
40% of purchases and other $354,155 $286,580 $301,916 $942,651
Equipment $250,000 $250,000
Dividend $45,000 $45,000
Total payments $784,026 $989,455 $817,477 $2,590,958 Surplus or Deficit ($22,100) $0 $0 ($22,100)
Opening balance $142,000 $120,000 $120,000 $142,000
Closing balance $120,000 $120,000 $120,000 $120,000
Chester & Wayne October November December Total
Cash budget
Cash collection
40% after 2% discount $308,700 $324,106 $340,334 $973,140
25% without discount $196,875 $206,700 $217,050 $620,625
30% in next month $225,000 $236,250
Another option is the issuing of preferred stock, the company’s common stock is already overvalued in the market; therefore, sourcing additional capital through common stock might result to lower proceeds.
Wayne Williams was charged with murdering two people in Atlanta, Georgia. Shockingly enough, he was also linked to the killing of ten other boys. The way the evidence effected this trial is what makes the case so well known. There were 28 different types of fibers linking Williams to the murder victims. That can be an overwhelming amount of evidence. This case happened in the 1980s and the evidence presented in the case was crucial to proving Williams guilt.
“Dear John Wayne” by Louise Erdrich is about the stereotype of the Native American, being a savage race on film and how the Native Americans watching the film react to those stereotypes.
Courage and selflessness are words that describe heroes. Mundane people can be heroes when they have enough perseverance to do extraordinary tasks. They sacrifice their needs for others. Frederick Douglass was a brave, honorable and bold abolitionist, his heroism was impactful and it changed the mindset of many people.
After the American Revolution, slavery became a more significant component in the American economy. As a result of many slave owners being materialistic, slaves were overworked and treated callously. One such slave was Frederick Douglass. Through most of his life, Douglass was trapped in a typical slave environment. However, Douglass taught himself to read and eventually escaped the desolate life of a slave. After his freedom, Douglass wrote his autobiography, Narrative of the Life of Frederick Douglass, which chronicled his life story. In his book, Douglass details his slave upbringing and how it affected him. His autobiography was incredibly comprehensive which is one reason
Finance. In order to finance our startup year, we issued stocks and borrowed loan to finance our operation and for safety in case the sales did not go well. Financing using stocks means that we are selling common or preferred stocks to individuals. In return for the money, they get some ownership over the company and its interest. This helps to bring public’s awareness about the company. If the sales suffice, we will pay the debt in the second round.
The company maintains a minimum cash balance of at least $50,000 at the end of each month. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.
Stanley Newcomb Kenton is one of the most influential figures to be found in all of jazz history, even being called "the most significant figure of the Modern Jazz age" by Frank Sinatra (Agostinelli, 6). Kenton's progressive concepts of how music is written and performed greatly affected the genre of jazz, and created something new and unique. Always under controversy, Kenton and his band always strove to do something different, never settling into a niche for long periods of time. Even today, when hearing modern jazz performers (particularly big bands) one can often hear the influence from Kenton's music.
Although the income statement and balance sheet provide measures of a company’s success in terms of performance and financial position, cash flow is also vital to a company’s long-term success. Disclosing the sources and uses of cash helps creditors, investors, and other statement users evaluate a company’s liquidity, solvency, and financial flexibility. Financial flexibility is the ability of a company to react and adapt to financial adversities and opportunities. McDonald’s cash flow is
We have audited the accompanying consolidated balance sheets of McDonald’s Corporation as of December 31, 2012 and 2011, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for each of the three years in the period
Require officers who have borrowed money from the company to repay the amounts owed at December 31. This would convert into cash the “notes receivable from officers,” which now appear in the balance sheet as noncurrent assets. The loans could be renewed immediately after year-end.
McDonald's Income Statement shows a revenue of 21.23B, and quarterly revenue growth of 9.40%, a gross profit of 6.32B, a diluted EPS of 2.22 and quarterly earnings growth to be at 57.30%. The balance sheet's total cash in 2005 is set at 3.29B. The net income for 2003 was $1,471,400 then greatly increasing in 2004 to 2,278,500 then increasing a little more to $2,602,200 in 2005 Yahoo Finance (2006).
Lancaster’s total cash for 2015 is lower than that of 2014, but it is still higher than the five-year average. Lancaster’s total cash seems to indicate that they are growing at a good rate—not so fast that they can’t keep up, but not too slow so that they don’t have access to the cash they need. Their cash flow is consistent, which is a good sign. Lancaster Colony’s inventories are also notable. There was a sharp decrease in the third year, after which it leveled out.
Its cash and cash equivalents at RM1.15b represents a sizeable 31.9% of the total borrowings, which it could utilize to meet its financial obligations.