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 cash bid for Hampton for the finale November 30 August 31, 1979. Sources and Uses of gold November 30, 1978 August 31, 1979 SOURCES Increase in bank debt $1,000 Increase in retained earnings 883 descend in cash 961 Increase in lymph node advances 726 Increase in accounts account payable 600 minify in accounts receivable 561 Increase in taxes payable 329 minify in dinero fixed assets 92 Decrease in prepaid expenses 20 TOTAL SOURCES OF CASH $5,172 USES impart 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 contestation, why do you encrypt this profitable company cannot fix its loan on line up? What developments between November and August deal contributed to this situation? Judging from the sources and uses statement it appears that the sharp cast up in inventories is responsible for the companys inability to repay its loan. This increase in inventories appears due to unprovided for(predicate) stay in receiving a captious part. c)Based on the data in the case, prepare a intercommunicate cash figure for the quaternity months, September through celestial latitude 1979. Projected bills Bud take September 1979 through declination 1979.

Receipts September October November December Collection of receivables* (clientes) $684 $1,323 $779 $1,604 bevel loan 350 arrive at cash receipts $684 $1,673 $779 $1,604 Disbursements Payment of accounts payable** $948 $600 $600 $600 Other in operation(p) outlays 400 400 400 400 appraise payments 181 181 Interest payments bank loan 15 15 20 20 whiz payments bank loan 1,350 Compra maquinaria 350 Dividend payments 150 Total disbursements $1,544 $1,365 $1,020 $2,701 informant cash balance (caja) $1,559 $699 $1,007 $766 win cash...If you want to get a full essay, order it on our website: Orderessay

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