Case 6B: Chester & Wayne Tatyana Cruz Ashford University Managerial Accounting BUS 630 Dr. Barrett February 6, 2017 Chester & Wayne

1. Prepare a cash budget for each month of the fourth quarter and for the quarter in total. Prepare supporting schedules as needed. See worksheet: Answer (1)
2. You meet with Mr. Chester and Mr. Wayne to present your findings and happen to bring along you PC with the budget model software. They are worried about your finding in Part 1. They have obviously been arguing over certain assumptions you were given. a. Mr. Wayne thinks that the gross margin may shrink to 27.5 percent because of higher purchase prices. He is concerned about what impact this will have on borrowings. Understanding gross margin is imperative for the management team in...