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    The cash budget for Itami Wholesale Company for December 2010 projects a net cash outflow of $7,850 after accounting for expected cash receipts of $235,900 from sales collections and a cash balance of $50,000 on December 1st. Cash disbursements of $243,750 are projected for purchases, fixed marketing and distribution services, and variable marketing costs. The cash budget for January 2011 then projects a net cash inflow of $109,050 after expected cash receipts of $285,800 and cash disbursements of $176,750, plus the $25,000 cash balance carried over from December.

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    The cash budget for Itami Wholesale Company for December 2010 projects a net cash outflow of $7,850 after accounting for expected cash receipts of $235,900 from sales collections and a cash balance of $50,000 on December 1st. Cash disbursements of $243,750 are projected for purchases, fixed marketing and distribution services, and variable marketing costs. The cash budget for January 2011 then projects a net cash inflow of $109,050 after expected cash receipts of $285,800 and cash disbursements of $176,750, plus the $25,000 cash balance carried over from December.

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    © All Rights Reserved
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    311 views3 pages

    8 Cash Budget Example Solution PDF

    Uploaded by

    moss roffatt
    The cash budget for Itami Wholesale Company for December 2010 projects a net cash outflow of $7,850 after accounting for expected cash receipts of $235,900 from sales collections and a cash balance of $50,000 on December 1st. Cash disbursements of $243,750 are projected for purchases, fixed marketing and distribution services, and variable marketing costs. The cash budget for January 2011 then projects a net cash inflow of $109,050 after expected cash receipts of $285,800 and cash disbursements of $176,750, plus the $25,000 cash balance carried over from December.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Cash Budgets

    Itami Wholesale Company

    Cash Budgets
    For the Month Ended December 31, 2010
    Cash receipts
    Collection from:
    November sales
    with discount

    (70%x$250,000x98%)

    without discount

    (20%x$250,000)

    50,000

    (8% x $180,000)

    14,400

    October sales
    Total cash receipts

    171,500

    235,900

    91,875

    Cash disbursements
    Payment on:
    December purchases

    (50%x2,625x$70)

    November purchases

    (50%x2,625x$70)

    91,875

    Fixed mkt, dist. & services

    ($150,000-$30,000)/12

    10,000

    Variable mkt, dist. & services ($250,000x$300K/$1500K)


    Total cash disbursements

    243,750

    Net cash inflow

    (7,850)

    Add: cash balance, Dec. 1

    50,000

    10,000

    Cash Budgets
    For the Month Ended January 31, 2011
    Cash receipts
    Collection from:
    December sales
    with discount

    (70%x$300,000x98%)

    without discount

    (20%x$300,000)

    60,000

    (8%x$250,000)

    20,000

    October sales
    Total cash receipts

    205,800

    285,800

    49,875

    Cash disbursements
    Payment on:
    January purchases

    (50%x1,425x$70)

    December purchases

    91,875

    Fixed mkt, dist. & services

    10,000

    Variable mkt, dist. & services ($250,000x$150K/$1500K)


    Total cash disbursements

    176,750

    Net cash inflow

    109,050

    Add: cash balance, Jan. 1

    25,000

    2,150

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