To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:

March                   $100,000

April                       $275,000

May                       $320,000

June                      $450,000

July                        $700,000

August                  $700,000

September         $825,000

October               $500,000

November          $115,000

He has also gathered the following collection estimates regarding the forecast sales:

Payment collection within the month of sale = 25%

Payment collection the month following sales = 55%

Payment collection the second month following sales = 20%

Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:

March                   $187,500

April                      $206,250

May                       $375,000

June                      $337,500

July                        $431,250

August                  $640,000

September         $395,000

October               $425,000

Additional financial information is as follows:

Administrative salaries will approximately amount to $35,000 a month.

Lease payments around $15,000 a month.

Depreciation charges, $15,000 a month.

A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.

Income tax payments estimated to be around $55,000 will be due in both June and September.

And finally, miscellaneous costs are estimated to be around $10,000 a month.

Cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times.

To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values. prepare a monthly cash budget for Cyrus Brown Manufacturing for the 9-month period of March through November.

Use Excel to prepare the monthly cash budget.

Based on your cash budget findings, answer the following questions:

#1. Will the company need any outside financing?

#2. What is the minimum line of credit that CBM will need?

#3. What do you think of CBM’s cash position during the budget period? Do you see any concerns for the company in this regard?

#4. If you were a bank manager, would you want CBM as your client? Why or why not?

Assignment must contain An Excel spreadsheet that contains the monthly cash budget for Cyrus Brown Manufacturing and a double-spaced Word document of 1–2 pages that contains your answers to the questions listed above.

• If Letisha does not pay and Sudson sues her for breach of contract, what legal arguments could be raised in Letisha’s defense against the enforcement of the automatic renewal clause? Explain.
• What legal arguments could be raised by Sudson in support of the enforcement of the automatic renewal clause against Letisha? Explain.
• What ethical issues are raised, if any, by Sudson’s practice of using the automatic renewal clause in their lease agreements? Explain.
• Does the Uniform Commercial Code Article 2A apply in this case? Explain.
• Are there any government or private entities available to Letisha for lodging complaints about businesses which treat consumers unfairly? Explain.
• If Sudson sues Letisha for breaching the contract’s automatic renewal clause, what do you think the outcome of the case will be? Explain.

FROM MICHEAK KIMMEL TEXT… 4TH ED

Continue analyzing and developing a marketing plan for the same product that you selected in Module 1.  For this week’s assignment, you will be determining the price for your product.  There will be two parts to the assignment.

1.         You will create an Excel spreadsheet that shows how you arrived at the price for your product.  You may use any method to determine your price.  Click here to use OpenOffice.

2.         You will also write a one to two page essay explaining your pricing strategy.  Please ensure that you have at least 2 references to the textbook.  You may also use other reference materials from LIRN (visit the Academic Resource Center for instructions on how to use LIRN).

For the Excel spreadsheet include: estimated costs (fixed and variable), mark-up, and profits.  Compare your product price with the competition’s pricing.  Determine what your final price will be for the product.  You may need to decide the sizes of the product that you will sell and price each one.  Show your break-even point. Remember:

For the written portion of the assignment, please ensure that your paper includes the following topics:

o   Supply and demand

o   Your pricing objective (profit oriented, sales oriented, or status quo)

o   The stages of the life cycle of your product

o   Which of the three basic approaches you used: price skimming, penetration pricing, or status quo pricing

o   The legality or ethics that affected your decision making

o   Whether you will fine tune the price with rebates, discounts, or any of the other methods