1.

      [Short-Term Financial Planning] The Itsar Products Company has made the fo
next twelve months. Itsar Products has beginning cash on hand

Month
January
February
March
April
May
June
July
August
September
October
November
December

A Determine whether Itsar Products will have a cash need during the next year

Month
January
February
March
April
May
June
July
August
September
October
November
December

Yes, Itsar products will need cash during the next year

B.     If Itsar Products has a cash need, indicate the month when the need will begin and dete
 A cash need will occur in Feburary when $20000 will be needed. The Largest monthly cash ne
May at $60000. the Maximum cumulative cash need will occur in June at $180,000

C.     Determine whether the cash need (if any) can be repaid within the next year.
the cumulative september needs to be excess of $10000 in september indicating that need ca

D.     Assuming minimum cash on hand requirements are $10,000 a month through May, increase to $15
further to $20,000 in August and September, and return to the $10,000 per month level beg

Month

January
February
March
April
May
June
July
August
September
October
November
December
tsar Products Company has made the following monthly estimates of cash receipts and cash disbursements when preparing c
r Products has beginning cash on hand of $10,000 and wants to maintain this minimum cash level throughout the next year.

Cash Receipts Cash Disbursements

### ###
### ###
### ###
### ###
### ###
### ###
### ###
### ###
### ###
### ###
### ###
### ###

ed during the next year

monthly receipts
Cash Receipts Cash Disbursements -disbursement cumulative Amount

### ### $0 $0
### ### ($20,000) ($20,000)
### ### ($30,000) ($50,000)
### ### ($50,000) ($100,000)
### ### ($60,000) ($160,000)
### ### ($20,000) ($180,000)
### ### $20,000 ($160,000)
### ### $70,000 ($90,000)
### ### $100,000 $10,000
### ### $90,000 $100,000
### ### $40,000 $140,000
### ### $0 $140,000

during the next year

month when the need will begin and determine the month and amount when the maximum need will occur.
will be needed. The Largest monthly cash need occurs in
tive cash need will occur in June at $180,000.

be repaid within the next year.

$10000 in september indicating that need can be repaid before the end of the year

00 a month through May, increase to $15,000 in June and July, increase

eturn to the $10,000 per month level beginning in October.

Cash Receipts Cash Disbursements Minimum cash need

### ### $10,000

### ### $10,000
### ### $10,000
### ### $10,000
### ### $10,000
### ### $15,000
### ### $15,000
### ### $20,000
### ### $20,000
### ### $10,000
### ### $10,000
### ### $10,000
bursements when preparing cash budgets for the
vel throughout the next year.

d will occur.