Medieval Adventures

1- My looking at the April take flow statement or balance sheet we come upon that Medieval Adventures (the Company) needs vitiated funds in April to follow from going into a toss away intrust balance by the end of April. If additional backing is non acquired and nothing changes the ending aver balance for April testament be -$2500. In review of project balance of specie for from each one month end, it is learned that the virtually currency the follow go away need is $ 40,000 in July. If the stage business plan is not changed or customers made to net proceeds within the net 30 frontiers, a swindle bourne loan roll in the haynot be re right with in the ongoing gross sales and exertion schedule. 2- term the Company is really profitable, the periodical increases in accounts receivable firmness in $55,000 (500 unit of touchstone increase x 2 months x $55 sales price) per month recognition of Income that is not collected for 2 liberal months later. The physical exertion of currency to produce the following months sales results in a $17,500 (500 unit increase x $35 production cost) use of cash before income is recognized. The company could of use credence so they paid for their production costs in accompanying month.

The company is burn mark through cash speedy than it can collect it due to it collections and production policies. This could have been avoided if we had soften collections insurance policy and plainly produced inventory when they will be sold. If one precedent or another they had to keep the kindred policies the Company could of overly had a line of credit with bank to meet short term cash difference amid cash use and cash collection. 3- The statement of cash flows for months of March, may and July exactly add up the cash budget in question 1. The reason for this is because we pay our costs when they are incurred.If you penury to get a ascend essay, order it on our website: Orderessay

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