1
2
3
4
15
16
17
18
19
20
21
32
33
34
35
36
37
A B C D E F G
H
Beginning cash balance 210,000$
Target cash balance 135,000$
Borrowing rate 1.2%
Invested securities 0.5%
Beginning short-term borrowing –$
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Collections from previous quarter 607,500.00$ 844,499.33$ 874,386.33$ 862,125.00$
Collections from current quarter sales 488,920.67 506,223.67 499,125.00 471,617.67
Payments to suppliers for previous quarter (392,618.11) (406,512.94) (400,812.50) (378,723.28)
Chapter 26
Keafer Manufacturing Working Capital Management
Input Area:
Quarterly cash flow
44
45
46
47
48
59
60
61
62
63
74
75
76
77
78
Q1 Q2 Q3 Q4
Beginning cash balance 210,000.00$ 111,655.50$ 245,900.56$ 38,895.17$
Net cash inflow (98,344.50) 134,245.06 (207,005.39) 116,810.70
Ending cash balance 111,655.50$ 245,900.56$ 38,895.17$ 155,705.87$
Interest on short-term borrowing – – – –
Short-term borrowing repaid – – – –
Ending cash balance 135,000.00$ 135,000.00$ 135,000.00$ 135,000.00$
Minimum cash balance (135,000.00) (135,000.00) (135,000.00) (135,000.00)
Cumulative surplus (deficit) –$ –$ –$ –$
Net cash cost
Q1 375.00$
Q2 375.00
Q3 1,048.10
Cash Balance
1
2
3
4
5
6
7
8
9
10
11
A B C D E F G
H
I
Engine: GRG Nonlinear
Solution Time: 0.031 Seconds.
Iterations: 2 Subproblems: 0
Solver Options
Max Time 100 sec, Iterations 100, Precision 0.000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Forward, Require Bounds
Microsoft Excel 14.0 Answer Report
Worksheet: [Jaffe 10th edition Case Solutions.xlsx]Chapter 26
Report Created: 8/4/2011 12:54:21 PM
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine