responses to the two members
The Question has two parts:
First Part:
You are the CFO of Miller Building Supplies. Using the financial exhibits at the end of the case study to determine the working capital required and actual level for each quarter of the year for the firm, address the following in your initial post:
What challenges does Miller Building Supplies face in establishing a monthly cash budget?
What would a cash budget provide Miller Building Supplies, if completed successfully?
What are some working capital options that might improve the firm’s cash position and profit?
How might the company’s accounts receivable choices impact the company?
Second Part:
Response to two members, comment on their answers. What improvements or challenges did they identify that you had perhaps not thought of? Provide any other short-term recommendations you can think of to improve the firm’s cash budgeting. Each comments need around 200 words.
I have finished the first part and you just need to answer the second part. I also uploaded first part and you can check it as reference.
Solution Preview
Member One
The first member has laid down the first challenge being that the company is facing problems because of the lack of proper records that are essential and would make the budget-making process easier. While making a budget for the sustainability of the business, it becomes necessary to have previous year’s budget to be able to make a comparison and improve where you went wrong with the estimates of the earlier years.
(529 words)