Please check out the attachment instructions to finish the questions by using given template
(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officer of Wang Appliance Store, is responsible for the companyâ€™s budgeting process. Farmerâ€™s staff is preparing the Wang cash budget for 2014. A key input to the budgeting process is last yearâ€™s statement of cash flows, which follows (amounts in thousands):
Wang Appliance Store
Statement of Cash Flows
Cash Flows from Operating Activities
Collections from customers $51,000
Interest Received 500
Purchase of inventory (36,000)
Operating expenses (10,200)
Net cash provided by operating activities 5,300
Cash Flows from Investing Activities
Purchase of equipment (3,500)
Purchase of investments (500)
Sale of investments 1,000
Net cash used for investing activities (3,000 )
Cash Flows from Financing Activities
Payment of long term debt (400)
Issuance of Stock 2,000
Payment of cash dividends (500)
Net cash provided by financing activities 1,000
Increase (decrease) in Cash 3,300
Cash, beginning of year 2,900
Cash, end of year 5,900
1. Prepare the Wang cash budget for 2014. Date the budget simply â€œ2014â€ and denote the beginning and ending cash balances as â€œbeginningâ€ and â€œending.â€ Assume the company expects 2014 to be the same as 2013, but with the following changes:
a. In 2014, the company expects a 20% increase in collections from customers and a 30% increase in purchases of inventory.
b. There will be no sales of investments in 2014.
c. Wang does not plan to issue stock in 2014.
d. Wang plans to end the year with a cash balance of $5,550.
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!Use Discount Code “Newclient” for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.