+1 (347) 474-1028 info@essayparlour.com

Since this expansion is critical to Genesis Corporation expa

Assignment Help Finance Since this expansion is critical to Genesis Corporation expa

Finance

Since this expansion is critical to Genesis Corporation expa

Since this expansion is critical to Genesis Corporation expanding into new overseas markets, the ope… Show more; Since this expansion is critical to Genesis Corporation expanding into new overseas markets, the operations management team has been asked to prepare an executive summary with supporting details for Genesisâ��s senior executives. Working over a weekend, the management team developed realistic assumptions to construct a working capital budget. Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research Other cash receipt: Rental income $15,000 per month Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 50 percent of sales Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase Selling and marketing expense: Five percent of sales General and administrative expense: Twenty percent of sales Interest payments: $75, 000â��Payable in December Tax payments: $15,000â��Quarterly due on 15th of April, July, October, and January Minimum cash balance desired: $ 25,000 per month Cash balance start of month (December): $15,000 Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit Dividend payment: None; ; Using the Cash Budget spreadsheet, calculate detailed company cash budgets for the forthcoming and subsequent years. Summarize the sources and uses of cash, and identify the external financing needs for both the forthcoming and subsequent years.; Download

Order Now

Ready to try a high quality writing service? Get a discount here