Reproduced below are selected financial data at the end of Year 6 and forecasts for the end of Year 7 for AlMasa Company:

Account Year 6 Year 7 (Forecast)
Cash $42,000 ?
Accounts receivable 90,000 ?
Inventory 38,400 $90,000
Fixed assets 120,000 120,000
Accumulated depreciation 25,800 30,000
Accounts payable 78,000 146,400
Notes payable 21,000 18,000
Accrued taxes 10,800 0
Capital stock 120,000 120,000

Additional forecast estimates for Year 7:
Sales                                       $495,000
Net Income                           $12,000
Cost of sales                         55% of sales forecast
Days’ sales in receivables 60 days
Assuming all expenses are paid in cash when incurred and that cost of sales is exclusive of depreciation, forecast the ending cash balance for year 7.  If AlMasa Company wishes to maintain a minimum cash balance of $60,000, must the company borrow?

Found something interesting ?

• On-time delivery guarantee
• PhD-level professional writers
• Free Plagiarism Report

• 100% money-back guarantee
• Absolute Privacy & Confidentiality
• High Quality custom-written papers

Related Model Questions

Feel free to peruse our college and university model questions. If any our our assignment tasks interests you, click to place your order. Every paper is written by our professional essay writers from scratch to avoid plagiarism. We guarantee highest quality of work besides delivering your paper on time.

Sales Offer

Coupon Code: SAVE25 to claim 25% special special discount