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  3. given the following information, how much of a lin

Given the following information, how much of a line of credit or loan is appropriate?...

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Accounting

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Given the following information, how much of a line of credit or loan is appropriate? (Jackie's Toy Manufacturer - 2005 Cash Budget for SEPT - NOV in $1,000,000s). Thirty percent of sales are for cash and the balance is collected the month following the sales. Seventy percent of the purchases are for cash and the balance is paid the month following the purchase. The required balance is 50. Sales Purchases 400 500 800 1,000 250 375 500 600 AUG SEPT OCT NOV Cash Inflows: Cash Sales 150 240 300 Collect AR 280 350 560 Other 70 80 1,500 Total Cash Inflows 500 670 2360 Cash Outflows: Cash Purchases Pay AP Other 262.5 350 _(FILL IN) 75. 112.5 150 140 250 155 500 X X 977,5 712,5 (FILL IN Asset Purchase Total Cash Outflows NET CASH FLOW (FILL IN) Beg Bal. 4775 50 -427.5 42.5 427.5 470.0 (FILL IN) End Bal. (FILL IN) (FILL IN) +Surp/Loan) -477.50 22. What is the Net Cash Flow for NOVEMBER? $2,013 b. 5725 6.50 d. None

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