College Custom Essay on Finance
**The assignment deliverables should include an excel file with the work done as per the problem AND a paper – short (approx. 2 pages) that 1) answers the questions posed in the problem, 2) tells us what questions this analysis helps with and 3) shares the lessons learned doing the problem. (be sure to include an intro and conclusion). **
- Lakewood Laser SkinCare’s ending cash balance as of January 31, 2012
(the end of its fiscal year 2011) was $10,000. Its expected cash collections
and payments for the next six months are given in the following table.
Month Collections Payments
February $16,500 $19,400
March 18,300 20,800
April 22,700 21,600
May 29,100 24,300
June 32,500 26,700
July 36,000 27,200
- Calculate the firm’s expected ending cash balance for each month.
- Assuming that the firm must maintain an ending cash balance of at
least $9,000, how much must they borrow during each month?
- If the firm must pay 5% annual interest on its short-term borrowing,
how does this affect your ending cash balance calculations?
- Finally, how would your ending cash balance change if the firm uses
any cash in excess of the minimum to pay off its short-term borrowing
in each month?
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