Cash budget

1st 2nd 3rd 4th Total

beginning cash balacnce 20,000 10,000 35,800 25,800 20,000
total cash receipts 180,000 330,000 210,000 230,000 950,000
Total cash available before cash disbursements 200,000 340,000 245,800 255,800 970,000
less total cash disbursements 260,000 230,000 220,000 240,000 950,000
Excess/Deficiency -60,000 110,000 25,800 15,800 20,000
Financing 70,000 -74,200 0 0 -4,200
Cash at end 10,000 35,800 25,800 15,800 15,800
Req- 1 Req-2
Schedule of expected cash collection Schedule of expected cash disbur
Month Oct Nov Dec 30% of Dec credit Purchase
budgeted credit sales 400,000 525,000 600,000 Payable balance of Nov Purchae
cash will be received from credit sales Cash expected cash disburstment for inv
Oct ( 18% of credit sales ) 72,000
Nov ( 60% of Nov credit sales ) 315,000
Dec ( 20% of Dec credit sales ) 120,000
Total cash will be received from credit sales 507,000
add Dec cash sales 83,000
total cash receipts 590,000

Req- 3
Cash budget
Dec
beginning cash balacnce 40,000
total cash receipts 590,000
Total cash available before cash disbursements 630,000
less cash disbursement
Cash expected cash disburstment for inventory purchase 245,000
selling and administrative exp 380,000
Purchase of Web server 76,000
Payment of dividends 9,000
less total cash disbursements 710,000
Excess/Deficiency -80,000
Financing 100,000
Cash at end 20,000
Schedule of expected cash disburstment for inventory purchae
ec credit Purchase 84,000
alance of Nov Purchae 161,000
ed cash disburstment for inventory purchase 245,000
Req- 1 Req-2
Schedule of expected cash collection Schedule of expected cash disburstment for inventory p
Month May 40% of May credit Purchase
budgeted credit sales 140,000 Payable balance of April Purchase
cash will be received from credit sales Cash expected cash disburstment for inventory purchase
April Receivable 54,000
May ( 50% of credit sales ) 70,000
Total cash will be received from credit sales 124,000
add May cash sales 60,000
total cash receipts 184,000

Req- 3
Cash budget Income statement
Dec sales
beginning cash balacnce 9,000 less cost of goods sold
total cash receipts 184,000 beginning invenotry
Total cash available before cash disbursements 193,000 add Purchase
less cash disbursement cost of goods avaialable for sales
Cash expected cash disburstment for inventory purchase 111,000 less M.inventory
selling and administrative exp 72,000 cost of goods sold
Payment of note payable 14,600 gross profit
Purchase of equipment 6,500 less operating exp
less total cash disbursements 204,100 selling and administrative exp
Excess/Deficiency -11,100 Depreciation
Financing 20,000 interest
Cash at end 8,900 total opeating exp
Net profit

Assets
Cash ( cash budget cash at end )
A/c receivable (50% of May credit sales )
inventory ( given )
Building and equipment ( 207000+6500)
less accmulated depreciation )
Total assets

Liabilities and stock holder equity

A/c payable (120000 X 60%)
Note payable
Capital stock
Retained earning ( 42500+15900)
ected cash disburstment for inventory purchae
48,000
April Purchase 63,000
rstment for inventory purchase 111,000

Income statement
200,000

30,000
120,000
ble for sales 150,000
40,000
110,000
90,000

72,000
2,000
100
74,100
15,900

8,900
70000
40000
213500
2000 211500
330,400

72,000
20,000
180,000
58,400
330,400
 Schedule of expected cash collection
February March April May June total
Total sales 200,000 300,000 600,000 900,000 500,000 2,000,000
Total credit sales ( 80% of total sales ) 160,000 240,000 480,000 720,000 400,000 1,600,000
Cash will be received from credit sales
Feb 32,000 0 0 32,000
March 168,000 48,000 0 216,000
April 48,000 336,000 96,000 480,000
May 0 72,000 504,000 576,000
June 0 0 40,000 40,000
Total cash will be received from credit sales 248,000 456,000 640,000 1,344,000
add Cash sales ( 20% of total sales ) 120,000 180,000 100,000 400,000
Total Cash will be received from sales 368,000 636,000 740,000 1,744,000

budgeted purchase ( cgs + desired ending inventory = total needs - beginning inventory
April May June total
cost of goods sold 420,000 630,000 350,000 1,400,000
add desired ending inventory ( 20% of NMCGS) 126,000 70,000 56,000 56,000
Total needs 546,000 700,000 406,000 1,456,000
Less beginning inventory 84,000 126,000 70,000 84,000
budgeted Purchase 462,000 574,000 336,000 1,372,000

Schedule of expected cash disburstment for inventory Purchase

April May June total
budgeted Purchase 462,000 574,000 336,000 1,372,000

Cash disbursment for inventory purhchase

March 63,000 0 0 63,000
April 231,000 231,000 0 462,000
May 0 287,000 287,000 574,000
June 0 0 168,000 168,000
Total Cash disbursment for inventory purhchase 294,000 518,000 455,000 1,267,000

Cash budget
April May June total
beginning cash balacnce 52,000 40,000 40,000 52,000
Total Cash will be received from sales 368,000 636,000 740,000 1,744,000
Total cash available before cash disbursements 420,000 676,000 780,000 1,796,000
less cash disbursement
Total Cash disbursment for inventory purhchase 294,000 518,000 455,000 1,267,000
selling exp 79,000 120,000 62,000 261,000
administrative exp 25,000 32,000 21,000 78,000
Dividends 49,000 0 0 49,000
Purchase of land 0 16,000 0 16,000
less total cash disbursements 447,000 686,000 538,000 1,671,000
Excess/Deficiency -27,000 -10,000 242,000 125,000
add financing 67,000 50,000 -120,010 -3,010
Cash at end 40,000 40,000 121,990 121,990
interest on 67,000 ( 3% X 67,000) 2,010
interest on 50,000 ( 2% X 50,000) 1,000
3,010
July
280,000
 Schedule of expected cash collection
May June July August Sep total
Total credit sales 250,000 300,000 400,000 600,000 320,000 1,320,000
Cash will be received from credit sales
May 7,500 0 0 7,500
June 210,000 9,000 0 219,000
July 100,000 280,000 12,000 392,000
August 0 150,000 420,000 570,000
Sep 0 0 80,000 80,000
Total cash will be received from credit sales 317,500 439,000 512,000 1,268,500

Cash budget
July August Sep total
beginning cash balacnce 44,500 28,000 23,000 44,500
Total cash will be received from credit sales 317,500 439,000 512,000 1,268,500
Total cash available before cash disbursements 362,000 467,000 535,000 1,313,000
less cash disbursement
Merchandise purchase 180,000 240,000 350,000 770,000
Salary and wages 45,000 50,000 40,000 135,000
Aderisting exp 130,000 145,000 80,000 355,000
Rent payment 9,000 9,000 9,000 27,000
Purchase of equipment 10,000 0 0 10,000
less total cash disbursements 374,000 444,000 479,000 1,297,000
Excess/Deficiency -12,000 23,000 56,000 16,000
add financing 40,000 0 -41,200 -1,200
Cash at end 28,000 23,000 14,800 14,800
 Schedule of expected cash collection
April May June total
Total credit sales 300,000 400,000 250,000 950,000
Cash will be received from credit sales
last months receivable 120,000 16,000 0 136,000
April 90,000 180,000 24,000 294,000
May 0 120,000 240,000 360,000
June 0 0 75,000 75,000
Total cash will be received from credit sales 210,000 316,000 339,000 865,000

Cash budget
April May June total
beginning cash balacnce 24,000 22,000 26,000 24,000
Total cash will be received from credit sales 210,000 316,000 339,000 865,000
Total cash available before cash disbursements 234,000 338,000 365,000 889,000
less cash disbursement
Merchandise purchase 140,000 210,000 160,000 510,000
Payroll 20,000 20,000 18,000 58,000
lease payments 22,000 22,000 22,000 66,000
adveristing exp 60,000 60,000 50,000 170,000
Purchase of equipment 0 0 65,000 65,000
less total cash disbursements 242,000 312,000 315,000 869,000
Excess/Deficiency -8,000 26,000 50,000 20,000
add financing 30,000 0 -31,200 -1,200
Cash at end 22,000 26,000 18,800 18,800