Case Studies ; PDF Company Short Term Financial Planning 2

 

1.     [Short-Term Financial Planning] The PDC Company was described during the early part of this chapter. Refer to the PDC Company’s projected monthly operating schedules in Table 6.2.     PDC’s sales are projected to be $80,000 in September 2017.

A.   Prepare PDC’s sales schedule, purchases schedule, and the wages schedule for August     2017.

B.   Prepare a cash budget for August 2017 for the PDC Company and describe how the forecast affects the end-of-month cash balance.

The beginning cash balance for August was $29,487. Total cash receipts less total cash disbursements for August were $8,075 ($101,200 - $93,125) resulting in an ending cash balance of $37,562.