Chapter 29 Financial Planning 783
bre44380_ch29_759-786.indd 783 10/06/15 09:53 AM
February March April
Total sales $200 $220 $180
Purchases of materials
For cash 70 80 60
For credit 40 30 40
Other expenses 30 30 30
Taxes, interest, and dividends 10 10 10
Capital investment 100 0 0❱ TABLE 29.14^ Selected budget data for Ritewell
Publishers. See Problem 13.February March April
Sources of cash:
Collections on cash sales
Collections on accounts receivables
Total sources of cash
Uses of cash:
Payments of accounts payable
Cash purchases of materials
Other expenses
Capital expenditures
Taxes, interest, and dividends
Total uses of cash
Net cash inflow
Cash at start of period 100
+ Net cash inflow
= Cash at end of period
+ Minimum operating cash balance 100 100 100
= Cumulative short-term financing required❱ TABLE 29.15^ Cash budget for Ritewell Publishers. See Problem 13.
Current Assets: Current Liabilities:
Cash $ 20 Bank loans $ 20
Marketable securities 10 Accounts payable 75
Accounts receivable 110 Total current liabilities $ 95
Inventory 100
Total current assets $240 Long-term debt 25
Net worth (equity and retained earnings) 300
Fixed Assets:
Gross investment $250
Less depreciation 70
Net fixed assets 180
Total assets $420 Total liabilities and net worth $420❱ TABLE 29.16^ Year-end balance sheet for Dynamic Mattress for 2013
(figures in $ millions). See Problem 16.