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 this disorganized system, the company employed Person X. The company has a cash balance of $240,000 and planning to purchase a new box folding in the fourth quarter at a cost of $445,000. The purchase of machinery is in cash mode because of offered discounts. It needs to maintain minimum cash balance of $125,000. Characters in the case: Company P: The manufacturer Person X: The new employee To determine: The cash budget 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 18, Problem 1M

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 this disorganized system, the company employed Person X. The company has a cash balance of $240,000 and planning to purchase a new box folding in the fourth quarter at a cost of $445,000. The purchase of machinery is in cash mode because of offered discounts. It needs to maintain minimum cash balance of $125,000.

Characters in the case:

Company P: The manufacturer

Person X: The new employee

To determine: The cash budget 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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