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Paladinen [302]
3 years ago
12

Arturo is a sales manager for the bratney companies, a company that manufactures equipment used in the processing of grains and

other produce. every year, arturo must submit a request for the number of new sales representatives to be hired in the next year. arturo's goal is clear—he must have enough sales reps to service all of britney's customers—but it is often difficult to predict how many customers the company will have. sales are dependent on the economy, weather, farming trends, and a large number of other environmental factors. arturo's decision about how many sales reps to hire is being made under conditions of , because:
Business
1 answer:
Paraphin [41]3 years ago
5 0

The decision must be made under conditions of <u>uncertainty/ambiguity</u> because the goal is clear but the numbers that will be used to calculate the number of sales reps will not be clear until the year is actually over.

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Answer:

Deitz Corporation

Cash Budget

For the Quarter ended March 31, 2020:

Beginning balance                              $33,300

Cash Collections From Customers   205,350

Sale of Equipment                                   3,330

Total available cash                          $241,980

Cash Payments:

Direct materials               $47,730

Direct labor                        77,700

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Ending Balance                                   $12,210

Minimum Balance                                27,750

Shortfall                                              $15,540

Explanation:

Deitz Corporation uses this Cash Budget which it has prepared to understand its financial needs for the next quarter.  For example, with the minimum balance of $27,750 most likely based on past experience the corporation will start making arrangements for some outside funds to the tune of $15,540 or more to meet its cash needs for the first quarter.

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