Answer To: I need this completed for me by a finance expert and in formulas.
Ashish answered on Jun 17 2021
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 surfeit 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...