Expected Cash collections | ||||
April | May | June | Quarter | |
Sales | 336,000 | 514,000 | 285,000 | 1,135,000 |
Collections: | ||||
30% in same month | 100,800 | 154,200 | 85,500 | 340,500 |
60% in following month | 124,800 | 201,600 | 308,400 | 634,800 |
8% in second month following sale | 16,640 | 26,880 | 43,520 | |
Total collections | 225,600 | 372,440 | 420,780 | 1,018,820 |
2.Cash Budget | ||||
April | May | June | Total | |
Beginning Cash Balance | 40,000 | 13,600 | 250,040 | 40,000 |
Add: Collections | 225,600 | 372,440 | 420,780 | 1,018,820 |
Cash available | 265,600 | 386,040 | 670,820 | 1,058,820 |
Less: Payments | ||||
Purchases | 187,000 | 24,000 | 145,500 | 356,500 |
Payroll | 16,000 | 16,000 | 27,000 | 59,000 |
Lease | 22,600 | 22,600 | 22,600 | 67,800 |
Advertising | 73,400 | 73,400 | 40,800 | 187,600 |
Equipment Purchase | 102,500 | 102,500 | ||
Total Disbursements | 299,000 | 136,000 | 338,400 | 773,400 |
Excess/Deficiency | -33,400 | 250,040 | 332,420 | 285,420 |
Financing | ||||
Borrowing | 47,000 | 47,000 | ||
Repayment | -47,000 | -47,000 | ||
Interest | -820 | -820 | ||
Total Financing | 47,000 | -47,820 | -820 | |
Ending Cash Balance | 13,600 | 250,040 | 284,600 | 284,600 |
Note: Depreciation is a non-cash expense and hence is not taken into cash budget |
The president of the retailer Prime Products has just approached the company's bank with a request...
The president of the retailer Prime Products has just approached the company's bank with a request for a $47,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
The president of the retailer Prime Products has just approached the company's bank with a request for a $55.000, 90- day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months Aprill through June, during...
The president of the retailer Prime Products has just approached the company's bank with a request for a $59,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
The president of the retailer Prime Products has just approached the company's bank with a request for a $87,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
The president of the retailer Prime Products has just approached the company’s bank with a request for a $30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
please answer fast The president of the retailer Prime Products has just approached the company's bank with a request for a $85,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through...
The president of the retailer Prime Products has just approached the company’s bank with a request for a $71,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
Check my wor 6 The president of the retailer Prime Products has just approached the company's bank with a request for a $75,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April...
The president of the retailer Prime Products has just approached the company's bank with a request for a $73,000.90 day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...
The president of the retailer Prime Products has just approached the company's bank with a request for a $55,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which...