I’ve been struggling in this course because I really don’t understand accounting. I’ve been using my book to my

best ability but have no clue where to start to complete this assignment ATTACHMENT PREVIEW Download attachmentACCT504 Case Study 3(Learning Objective 5: Construct and use a cash budget) Nathan Farmer, chief financial officerof Wang Appliance Store, is responsible for the company’s budgeting process. Farmer’s staff ispreparing the Wang cash budget for 2014. A key input to the budgeting process is last year’sstatement of cash flows, which follows (amounts in thousands):Wang Appliance StoreStatement of Cash Flows2013(in thousands)Cash Flows from Operating ActivitiesCollections from customers$51,000Interest Received500Purchase of inventory(36,000)Operating expenses(10,200)Net cash provided by operating activities5,300Cash Flows from Investing ActivitiesPurchase of equipment(3,500)Purchase of investments(500)Sale of investments1,000Net cash used for investing activities(3,000)Cash Flows from Financing ActivitiesPayment of long term debt(400)Issuance of Stock2,000Payment of cash dividends(500)Net cash provided by financing activities1,100CashIncrease (decrease) in Cash3,400Cash, beginning of year2,900Cash, end of year6,300

View the Answer▸Requirements1.Prepare the Wang cash budget for 2014. Date the budget simply “2014” and denote thebeginning and ending cash balances as “beginning” and “ending.” Assume the companyexpects 2014 to be the same as 2013, but with the following changes:oa.In 2014, the company expects a 20% increase in collections from customersand a 30% increase in purchases of inventory.ob.There will be no sales of investments in 2014.oc.Wang does not plan to issue stock in 2014.od.Wang plans to end the year with a cash balance of $5,550.

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