Company P manufacturing is the manufacturer of cardboard boxes. The company decided to put all its receivables in one shoebox and all payables in others. Due to this disorganized system, the company employed Person X. The company has a cash balance of $154,000 and is planning to purchase a new box folding in the fourth quarter at a cost of $325,000. The purchase of machinery is in cash mode because of the discounts offered. It needs to maintain a minimum cash balance of $100,000. Characters in the case: Company P: The manufacturer Person X: The new employee To determine: The cash budget and short-term financial plan of P manufacturers. Introduction: Cash budget is the numerical expression of cash inflows and outflows of the company during a specific period.

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Chapter 16, Problem 1CC

Summary Introduction

Case summary:

Company P manufacturing is the manufacturer of cardboard boxes. The company decided to put all its receivables in one shoebox and all payables in others.

Due to this disorganized system, the company employed Person X. The company has a cash balance of $154,000 and is planning to purchase a new box folding in the fourth quarter at a cost of $325,000. The purchase of machinery is in cash mode because of the discounts offered. It needs to maintain a minimum cash balance of $100,000.

Characters in the case:

Company P: The manufacturer

Person X: The new employee

To determine: The cash budget and short-term financial plan of P manufacturers.

Introduction:

Cash budget is the numerical expression of cash inflows and outflows of the company during a specific period.

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