Short-Term Financial Management

      To avoid any uncertain" rel="nofollow">inty regardin" rel="nofollow">ing his busin" rel="nofollow">iness' fin" rel="nofollow">inancin" rel="nofollow">ing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturin" rel="nofollow">ing (CBM)- He has estimated the followin" rel="nofollow">ing sales forecast for CBM over the next 9 months: March $100,000 April $275,000 May $320,000 June $450,000 July $700,000 August $700,000 September $825,000 October $500,000 November $115,000 He has also gathered the followin" rel="nofollow">ing collection estimates regardin" rel="nofollow">ing the forecast sales: Payment collection within" rel="nofollow">in the month of sale = 25% Payment collection the month followin" rel="nofollow">ing sales = 55% Payment collection the second month followin" rel="nofollow">ing sales = 20% Payments for direct manufacturin" rel="nofollow">ing costs like raw materials and labor are made durin" rel="nofollow">ing the month that follows the one in" rel="nofollow">in which such costs have been in" rel="nofollow">incurred- These costs are estimated as follows: March $187,500 April $206,250 May $375,000 June $337,500 July $431,250 August $640,000 September $395,000 October $425,000 Additional fin" rel="nofollow">inancial in" rel="nofollow">information is as follows: Admin" rel="nofollow">inistrative salaries will approximately amount to $35,000 a month- Lease payments around $15,000 a month- Depreciation charges, $15,000 a month-       A one-time new plant in" rel="nofollow">investment in" rel="nofollow">in the amount of $95,000 is expected to be in" rel="nofollow">incurred and paid in" rel="nofollow">in June- Income tax payments estimated to be around $55,000 will be due in" rel="nofollow">in both June and September. And fin" rel="nofollow">inally, miscellaneous costs are estimated to be around $10,000 a month- Cash on hand on March 1 will be around $50,000, and a min" rel="nofollow">inimum cash balance of $50,000 shall be on hand at all times- To receive full credit on this assignment, please show all work, in" rel="nofollow">includin" rel="nofollow">ing formulas and calculations used to arrive at the fin" rel="nofollow">inancial values- Group Project Guidelin" rel="nofollow">ines As a group, prepare a monthly cash budget for Cyrus Brown Manufacturin" rel="nofollow">ing for the 9-month period of March through November- Use Excel to prepare the monthly cash budget- Based on your cash budget fin" rel="nofollow">indin" rel="nofollow">ings, answer the followin" rel="nofollow">ing questions: Will the company need any outside fin" rel="nofollow">inancin" rel="nofollow">ing? What is the min" rel="nofollow">inimum lin" rel="nofollow">ine of credit that CBM will need? What do you thin" rel="nofollow">ink of CBM's cash position durin" rel="nofollow">ing the budget period? Do you see any concerns for the company in" rel="nofollow">in this regard? If you were a bank manager, would you want CBM as your client? Why or why not?