Minimum Cash Balance $25,000 Beg Cash Balance $28,000 Historical Sales & Base Ca
ID: 2482295 • Letter: M
Question
Minimum Cash Balance $25,000
Beg Cash Balance $28,000
Historical Sales & Base Case Sale Predicitions for Future Sales
January
______
January
$100,000 May $275,000 February 120,000 June 200,000 March 150,000 July 200,000 April 300,000 August 180,000 Purcahses as a % of Sales 66% Annual Interest Rate 12% Collections: current month 1st month later 2nd month late 20% 50% 30% Cash Budget for Jan thru June Nov Dec Jan Feb March April May June July Aug 220,000 175,000 100,000 120,000 150,000 300,000 275,000 200,000 200,000 180,000 collections Month of Sales 1st month 2nd month _______ _______ ______ ______ ______ ______ ______ _______ total collections _____________
_______ _______ ______ ______ ______ ______ ______ _______ Purchases Payments ______ ______ _______ _______ ______ _______ _______ ______ ______ _______ _______ _______ ______ _______ _______ ______ ______ _______ Cash Receipts _______ _______ ______ _______ _______ ______ ______ _______ (collections) Cash Disbursements Payments for Purchases Rent 10,000 10,000 10,000 10,000 10,000 10,000 Other expenditures 20,000 20,000 20,000 20,000 20,000 20,000 Tax Deposits 22,500 22,500 Interest on S-T borrowing ______ _______ ______ _______ _______ ______ _______ Total Disbursements Net Monthly Charge Analysis of Borrowing Needs Beg Cash Bal 28,000 End Cash (no borrowing) Needed (borrowing) Loan Repayment _______ _______ ______ _______ _______ ______ _______ Ending Cash Bal ________ _______ _______ _______ _______ _______ _______ ______ _______ _______ Cumulative BorrowingExplanation / Answer
Cash Budget
Cash Budget
for Jan thru June Nov Dec Jan Feb March April May June July Aug Sales 220,000 175,000 100,000 120,000 150,000 300,000 275,000 200,000 200,000 180,000 collections Month of Sales 20000 24000 30000 60000 55000 40000 40000 36000 1st month 87500 50000 60000 75000 150000 137500 100000 100000 2nd month 66000 52500 30000 36000 45000 90000 82500 60000 total collections 173500 126500 120000 171000 250000 267500 222500 196000 Purchases 145200 115500 66000 79200 99000 198000 181500 132000 132000 118800 Purchases 145200 115500 66000 79200 99000 198000 181500 132000 132000 118800 _______ _______ ______ _______ _______ ______ ______ _______ Cash Receipts 173500 126500 120000 171000 250000 267500 (collections) Cash Disbursements Payments for Purchases 66000 79200 99000 198000 181500 132000 Rent 10,000 10,000 10,000 10,000 10,000 10,000 Other expenditures 20,000 20,000 20,000 20,000 20,000 20,000 Tax Deposits 22,500 22,500 Interest on S-T borrowing Total Disbursements 96000 109200 151500 228000 211500 184500 Net Monthly Charge 77500 17300 -31500 -57000 38500 83000 Analysis of Borrowing Needs Beg Cash Bal 28,000 105500 122800 91300 34300 72800 End Cash (no borrowing) 105,500 122,800 91,300 34,300 72,800 155,800 Needed (borrowing) 0 0 0 0 0 0 Loan Repayment Ending Cash Bal 105,500 122,800 91,300 34,300 72,800 155,800 Cumulative Borrowing 0 0 0 0 0 0