Hampton machine tools

Hampton Machine Tool Company 9-280-103 Rev. 12/3/91 SUGGESTED ANSWERS Rocky Higgins April 2001 a)Prepare a sources and uses of capital bid for Hampton for the period November 30 August 31, 1979. Sources and Uses of silver November 30, 1978 August 31, 1979 SOURCES Increase in desire debt $1,000 Increase in retained earnings 883 descend in immediate payment 961 Increase in node advances 726 Increase in accounts payable 600 Decrease in accounts receivable 561 Increase in taxes payable 329 Decrease in net fixed assets 92 Decrease in prepaid expenses 20 TOTAL SOURCES OF bullion $5,172 USES Stock repurchase $3,000 Increase in inventories 2,163 Decrease in accruals 9 TOTAL USES OF CASH $5,172 b)Reflecting on this sources and uses statement, why do you reckon this profitable troupe cannot repay its loan on clip? What developments between November and August have contributed to this situation? judicial decision from the so urces and uses statement it appears that the sharp increase in inventories is responsible for the companys inability to repay its loan. This increase in inventories appears receivable to unprovided for(predicate) delay in receiving a critical part. c)Based on the info in the case, prepare a projected cash imagine for the four months, folk through December 1979. Projected bills bud welcome September 1979 through December 1979.

Receipts September October November December Collection of receivables* (clientes) $684 $1,323 $779 $1,604 bevel loan 350 derive cash receipts $684 $1,673 $779 $1,604 Disbursements Payment of accounts payable** $948 $600 $600 $600 Other in operation(p) out! lays cd 400 400 400 Tax payments 181 181 Interest payments hope loan 15 15 20 20 headway payments bank loan 1,350 Compra maquinaria 350 Dividend payments 150 Total disbursements $1,544 $1,365 $1,020 $2,701 Beginning cash balance (caja) $1,559 $699 $1,007 $766 Net cash...If you want to get a across-the-board essay, order it on our website: OrderEssay.net

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