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    Tom Patterson The Chief Financial Officer Is Responsible For Gateway

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    Amit Pandey
    Tom Patterson, the chief financial officer of Gateway Golf, is responsible for creating the company's cash budget for 2015. The budget will help Patterson determine how much long-term borrowing is needed to end the year with $135,000 in cash. Patterson's assistants have provided budget data for 2015, including projected income, expenses, assets, liabilities, and equity. Patterson must use this data to construct the cash budget and calculate financial ratios to determine if the company should take on $95,000 in additional debt.

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    Tom Patterson The Chief Financial Officer Is Responsible For Gateway

    Uploaded by

    Amit Pandey
    57 views1 page
    Tom Patterson, the chief financial officer of Gateway Golf, is responsible for creating the company's cash budget for 2015. The budget will help Patterson determine how much long-term borrowing is needed to end the year with $135,000 in cash. Patterson's assistants have provided budget data for 2015, including projected income, expenses, assets, liabilities, and equity. Patterson must use this data to construct the cash budget and calculate financial ratios to determine if the company should take on $95,000 in additional debt.

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    Tom Patterson, the chief financial officer of Gateway Golf, is responsible for creating the company's cash budget for 2015. The budget will help Patterson determine how much long-term borrowing is needed to end the year with $135,000 in cash. Patterson's assistants have provided budget data for 2015, including projected income, expenses, assets, liabilities, and equity. Patterson must use this data to construct the cash budget and calculate financial ratios to determine if the company should take on $95,000 in additional debt.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    57 views1 page

    Tom Patterson The Chief Financial Officer Is Responsible For Gateway

    Uploaded by

    Amit Pandey
    Tom Patterson, the chief financial officer of Gateway Golf, is responsible for creating the company's cash budget for 2015. The budget will help Patterson determine how much long-term borrowing is needed to end the year with $135,000 in cash. Patterson's assistants have provided budget data for 2015, including projected income, expenses, assets, liabilities, and equity. Patterson must use this data to construct the cash budget and calculate financial ratios to determine if the company should take on $95,000 in additional debt.

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    Solved: Tom Patterson the chief financial officer is

    responsible for Gateway


    Tom Patterson the chief financial officer is responsible for Gateway

    Tom Patterson, the chief financial officer, is responsible for Gateway Golf’s cash budget for
    2015. The budget will help Patterson determine the amount of long-term borrowing needed to
    end the year with a cash balance of $135,000. Patterson’s assistants have assembled budget
    data for 2015, which the computer printed in alphabetical order. Not all the data items
    reproduced below are used in preparing the cash budget.
    (Assumed Data) (In thousands)
    Actual cash balance, December 31, 2014............................. $ 145
    Budgeted total assets, December 31, 2015............................ 22,677
    Budgeted total current assets, December 31, 2015............... 7,576
    Budgeted total current liabilities, December 31, 2015........... 4,360
    Budgeted total liabilities, December 31, 2015...................... 11,588
    Budgeted total stockholders’ equity, December 31, 2015...... 11,089
    Collections from customers.................................................. 20,400
    Dividend payments .............................................................. 307
    Issuance of stock.................................................................. 632
    Net income........................................................................... 1,213
    Payment of long-term and short-term debt........................... 990
    Payment of operating expenses ............................................ 2,849
    Payments for inventory items............................................... 14,245
    Purchase of property and equipment with cash.................... 1,588

    Requirements
    1. Construct the cash budget of Gateway Golf, Inc.
    2. Compute Gateway Golf’s budgeted current ratio and debt ratio at December 31, 2015.
    Based on these ratio values, and on the cash budget, would you lend $95,000 to Gateway Golf?
    Give the reason for your decision.

    Tom Patterson the chief financial officer is responsible for Gateway

    ANSWER
    https://solvedquest.com/tom-patterson-the-chief-financial-officer-is-responsible-for-gateway/

    Reach out to [email protected] for enquiry.


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