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2. Alica Inc is in the gym business and has a number gyms in different oties It is the end of the fiscal year and you wive been asked of by the CEO o develop a cash budget for the list 3 months of the new fiscal year The actual results for Alice Inc during the last 3 months are given below REVENUE ACCTS PAY WAGES RENI UTILITIES MAINT DEPRECIATION INSURANCE EXP Oct $1.00.000 350 000 250.000 50.000 25 000 35 000 10.000 15.500 NOV 935,000 360 000 255.000 50 000 30.000 38 000 10,000 15 500 DEC $900.000 270,000 245.000 50,000 31000 30 000 10.000 15,500 The budget for the next 3 months is as follows. MAR SALES ACCTS. PAY WAGES RENT UTILITIES MAINT DEPRECIATION INSURANCE VAN S 955.000 250.000 265.000 55,000 40,000 32.000 10,000 16,000 FEB $920,000 230,000 260,000 55,000 35 000 31,500 12.000 16.000 $1050,000 280.000 245.000 55,000 30,000 32.000 12.000 16,000 EXP The credit department has developed a profile of how customers pay their bills based on the standard forms Alico Inc offers of net 30 days. 90% of all receivables are paid after 30 days 94% of all receivables are paid after 60 days and 97% are paid after 90 days. Accounts payable are paid 30 days after they are received. All other expenses are paid in the month in which they are incurred In January, Alico plans to buy 25 new Elliptical exercise machines for $3.900 each including installation and set up. The company plans to finance the Ellipticals using a $500,000 letter of credit it has established with their bank. The terms of the letter of credit require that Alico pay off as much as it can on the four monthly The annual interest rate is 10% payable monthly on the outstanding balance. The first payment will be in February 2 The company wants to keep $145.000 cash at the beginning of each monthAt the end of Dec. $ 150 000 was in the cast account Required A Develop a cash budget for an and Feb Use the form provod The company wants to keep $145,000 in cash at the beginning of each month. At the end of Dec. $150,000 was in the cash account. Required: A Develop a cash budget for Jan., and Feb. Use the form provided. 2 Alico Inc. is in the gym business and has a number gyms in different cities. It is the end of the fiscal year and you have been asked of by the CEO to develop a cash budget for the first 3 months of the new fiscal year. The actual results for Alico Inc during the last 3 months are given below REVENUE ACCTS, PAY WAGES RENT UTILITIES MAINT DEPRECIATION INSURANCE EXP OCT $1,00,000 350,000 250,000 50 000 25,000 35,000 10,000 15,500 NOV 935,000 360,000 255,000 50,000 30,000 38,000 10,000 15,500 DEC $900,000 270,000 245.000 50.000 31,000 30,000 10,000 15,500 The budget for the next 3 months is as follows: SALES ACCTS. PAY WAGES RENT UTILITIES MAINT DEPRECIATION INSURANCE EXP JAN $ 955.000 250,000 265,000 55,000 40,000 32,000 10,000 16,000 FEB $920,000 230,000 260,000 55,000 35,000 31,500 12 000 16.000 MAR $1,050,000 280,000 245,000 55,000 30,000 32,000 12,000 16,000 The credit department has developed a profile of how customers pay their bills based on the standard terms Alice Inc offers of net 30 days 90% of all receivables are paid after 30 days. 94% of all receivables are paid after 60 days and 97% are paid after 90 days Accounts payable are paid 30 days after they are received. All other expenses are paid in the month in which they are incurred. In January, Alico plans to buy 25 new Elliptical exercise machines for $3,900 each including installation and set up The company plans to finance the Ellipticals using a $500,000 letter of credit it has established with their bank. The terms of the letter of credit require that Alico pay off as much as it can on the loan monthly. The annual interest rate is 10% payable monthly on the outstanding balance. The first payment will be in February 2. Alica Inc is in the gym business and has a number gyms in different oties It is the end of the fiscal year and you wive been asked of by the CEO o develop a cash budget for the list 3 months of the new fiscal year The actual results for Alice Inc during the last 3 months are given below REVENUE ACCTS PAY WAGES RENI UTILITIES MAINT DEPRECIATION INSURANCE EXP Oct $1.00.000 350 000 250.000 50.000 25 000 35 000 10.000 15.500 NOV 935,000 360 000 255.000 50 000 30.000 38 000 10,000 15 500 DEC $900.000 270,000 245.000 50,000 31000 30 000 10.000 15,500 The budget for the next 3 months is as follows. MAR SALES ACCTS. PAY WAGES RENT UTILITIES MAINT DEPRECIATION INSURANCE VAN S 955.000 250.000 265.000 55,000 40,000 32.000 10,000 16,000 FEB $920,000 230,000 260,000 55,000 35 000 31,500 12.000 16.000 $1050,000 280.000 245.000 55,000 30,000 32.000 12.000 16,000 EXP The credit department has developed a profile of how customers pay their bills based on the standard forms Alico Inc offers of net 30 days. 90% of all receivables are paid after 30 days 94% of all receivables are paid after 60 days and 97% are paid after 90 days. Accounts payable are paid 30 days after they are received. All other expenses are paid in the month in which they are incurred In January, Alico plans to buy 25 new Elliptical exercise machines for $3.900 each including installation and set up. The company plans to finance the Ellipticals using a $500,000 letter of credit it has established with their bank. The terms of the letter of credit require that Alico pay off as much as it can on the four monthly The annual interest rate is 10% payable monthly on the outstanding balance. The first payment will be in February 2 The company wants to keep $145.000 cash at the beginning of each monthAt the end of Dec. $ 150 000 was in the cast account Required A Develop a cash budget for an and Feb Use the form provod The company wants to keep $145,000 in cash at the beginning of each month. At the end of Dec. $150,000 was in the cash account. Required: A Develop a cash budget for Jan., and Feb. Use the form provided. 2 Alico Inc. is in the gym business and has a number gyms in different cities. It is the end of the fiscal year and you have been asked of by the CEO to develop a cash budget for the first 3 months of the new fiscal year. The actual results for Alico Inc during the last 3 months are given below REVENUE ACCTS, PAY WAGES RENT UTILITIES MAINT DEPRECIATION INSURANCE EXP OCT $1,00,000 350,000 250,000 50 000 25,000 35,000 10,000 15,500 NOV 935,000 360,000 255,000 50,000 30,000 38,000 10,000 15,500 DEC $900,000 270,000 245.000 50.000 31,000 30,000 10,000 15,500 The budget for the next 3 months is as follows: SALES ACCTS. PAY WAGES RENT UTILITIES MAINT DEPRECIATION INSURANCE EXP JAN $ 955.000 250,000 265,000 55,000 40,000 32,000 10,000 16,000 FEB $920,000 230,000 260,000 55,000 35,000 31,500 12 000 16.000 MAR $1,050,000 280,000 245,000 55,000 30,000 32,000 12,000 16,000 The credit department has developed a profile of how customers pay their bills based on the standard terms Alice Inc offers of net 30 days 90% of all receivables are paid after 30 days. 94% of all receivables are paid after 60 days and 97% are paid after 90 days Accounts payable are paid 30 days after they are received. All other expenses are paid in the month in which they are incurred. In January, Alico plans to buy 25 new Elliptical exercise machines for $3,900 each including installation and set up The company plans to finance the Ellipticals using a $500,000 letter of credit it has established with their bank. The terms of the letter of credit require that Alico pay off as much as it can on the loan monthly. The annual interest rate is 10% payable monthly on the outstanding balance. The first payment will be in February

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