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mathxd.com/Student/PlayerHomework.asp meworkld-484459228quest &questionld-3flushed-false;ßicld-5025867¢erwin; FINA 3380-90L JESSICA DIAZ 7/5/18 10:41 PM Homework: Homework Set 4 Score: 0 of 2 pts P4-13 (similar to) 6 of 25 (4 complete) HW Score: 14.16%, 7.08 of 50 ; EQueston Heip Cash budget-Scenario analysis Trotter Enterprises, Inc., has gathered the following data in order to plan for its cash requirements and short-ferm investment opporturities for Oclober, November, and December. All amounts are shown in thousands of dollars. (Click on the icon located on the top-nght comer of the data table below in order to copy its contents into a spreadsheet.) November (5000 December (5000) October ($000) Most likely Opt mistic Opt mistic Pessi Most ikely Opti mistic mistic 5293 $191 289 3353 315 5388 Total cash receipts Total cash disbursements S343 325 $199 203 287 422 261 a. Prepare a scenario analysis of Trotter\'s cash budget using -$22,000 as the beginning cash balance for October and a minimum requised cash balance of $18,000 b. Use the analysis prepared in part a to predict Trotter\'s fimancing needs and investment opportunities over the months of October, November, and December. Discuss how knowledge of the timing and amounts involved can aid the planning process Multiple Cash Budgets ($000) October Pessi- mistic November December Pessi mistic Pessi- 191 Total cash receipts Total cash drsbursements Net cash flow Add Beginning cash Ending cash Fimancing 287 203 289 27 $ Cash balance heck Answer Enter any number in the edit fields and then click Check Answer Clear All 0:41 P ENG /5/2018
Solution
SCENARIO I: PESSIMISTIC
SCENARIO II MOST LIKELY
SCENARIO III OPTIMISTIC
| Particulars | October | November | December |
| Total cash receipt | 260000 | 199000 | 191000 |
| Total cash reimbursement | 287000 | 203000 | 289000 |
| Net inflow | -17000 | -4000 | -98000 |
| Add: opening balance | -22000 | 18000 | 18000 |
| Net balance | -39000 | 14000 | -80000 |
| Funding requirement | 57000 | 4000 | 98000 |
| Ending cash | 18000 | 18000 | 18000 |
