Cyrus brown manufacturing (cbm). | Business & Finance homework help


Please recognize the bearing calibre of your textbook, which apply to money progress and financial planning.

To eschew any vicissitude touching his business' financing scarcitys at the date when such scarcitys may commence, Cyrus Brown shortnesss to enucleate a money budget for his concluding venture: Cyrus Brown Manufacturing (CBM). He has estimated the aftercited sales apprehend for CBM aggravate the proximate 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 to-boot gathered the aftercited assemblage estimates touching the apprehend sales:

  • Payment assemblage among the month of sale = 25%
  • Payment assemblage the month aftercited sales = 55%
  • Payment assemblage the succor month aftercited sales = 20%

Payments for straightforward manufacturing costs relish raw materials and operation are made during the month that follows the one in which such costs enjoy been 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 financial advice is as follows:

  • Administrative salaries accomplish almost aggregate to $35,000 a month.
  • Lease payments environing $15,000 a month.
  • Depreciation jaw, $15,000 a month.
  • A one-date new settle bombardment in the aggregate of $95,000 is expected to be incurred and remunerated in June.
  • Income tax payments estimated to be environing $55,000 accomplish be due in twain June and September.
  • And finally, miscellaneous costs are estimated to be environing $10,000 a month.
  • Cash on index on March 1 accomplish be environing $50,000, and a stint money weigh of $50,000 shall be on index at all dates.

To entertain ample trustworthiness on this assignment, fascinate likeness all operation, including formulas and calculations used to enter at the financial values.

Group Project Guidelines

  • As a class, just a monthly money budget for Cyrus Brown Manufacturing for the 9-month time of March through November.
    • Use Excel to just the monthly money budget.
  • Based on your money budget findings, retort the aftercited questions:
    • Will the guild scarcity any without financing?
    • What is the stint direction of trustworthiness that CBM accomplish scarcity?
    • What do you fancy of CBM's money standing during the budget time? Do you see any concerns for the guild in this notice?
    • If you were a bank supervisor, would you shortness CBM as your client? Why or why not?
  • It is up to the members of the class to dissect the assignment tasks evenly. You accomplish be graded on class participation

Your submitted Class Project (200 points) must enclose the aftercited:

  • 100 Points. A Excel spreadsheet that contains your class's monthly money budget for Cyrus Brown Manufacturing.
  • 100 Points. A double-spaced Word muniment of 1–2 pages that contains your retorts to the questions listed in the Assignment Guidelines.