I need this completed for me by a finance expert and in formulas.

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I need this completed for me by a finance expert and in formulas.
Answered Same DayJun 17, 2021

Answer To: I need this completed for me by a finance expert and in formulas.

Ashish answered on Jun 17 2021
148 Votes
3.14 Instructions and Info
    Chapter 3 Problem 14
    a    Using the information provided, construct a monthly cash budget for October through December 2014. Based on your analysis, will Noble enjoy a s
urfeit of cash, or require external financing?
    b    Construct a pro forma income statement for the first fiscal quarter of 2015 and a pro forma balance sheet as of December 31, 2014. What is your estimated external financine needed for December 31?
    c    Does the December 31, 2014, estimated external financing equal your cash surplus (deficit) for this date from your cash budget?
    d    Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2014.
    Noble Selected Information and Financial Statements
        Sales (20 percent for cash, the rest on 30-day credit terms):
        2014 Actual            2014 Projected
        July    August    September    October    November    December
        76,000    88,000    266,000    125,000    51,000    53,000
        Purchases (all on 60-day terms):
        2014 Actual            2014 Projected
        July    August    September    October    November    December
        116,000    122,000    257,000    62,000    27,000    26,000
    Salaries payable monthly                20,000
    Principal payment on debt due in December                25,700
    Interest due in December                9,000
    Dividend payable in December                15,000
    Taxes payable in November                19,000
    Addition to accumulated depreciation in December                4,000
    Cash balance on October 1, 2014                34,000
    Minimum desired cash balance                15,000
    Noble’s annual income statement and balance sheet for September 30, 2014 appear below.
    Additional information about the company's accounting methods and expectations for
    the last three months of 2014 appear in the footnotes.
            Noble
            Annual Income Statement
            Fiscal Year ended September 30, 2014 ($ 000)
    Net sales            1,581.6
    Cost of goods sold1            1,098.0
    Gross profits            483.6
    Selling and administrative expenses2            240.0
    Interest expense            18.0
    Depreciation3            16.0
    Net profit before...
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