Question

that only 20 percent of the on 40 percent are paid for in the month after . The the month, I 300,000 330,000 450,00e Required: 3. Prepare a schedule that the firm's financing cash flows for January through March

Answer 1

1) Cash collection:
	Jan	Feb	Mar
coll of AR	36000			20% of AR
of jan sales	480000*0.6=288000	480000*0.3=144000
of feb sales		342000	171000
of mar sales			351000
sale of eqiup			18000
total cash collect	324000	486000	540000
2) Cash disbursements:
	Jan	Feb	Mar
Payment of AP	69000
of Jan pur	300000*0.6=180000	120000
of feb pur		198000	132000
of mar pur			270000
Cash Ope costs'	96000	75000	138000
Total disbursements	345000	393000	540000
3) Cash Budget :
	Jan	Feb	Mar
Open balance	60000	60000	131842.5
add: collections	324000	486000	540000
Total Cash available	384000	546000	671842.5
Less: Disbursements:	345000	393000	540000
Cash excess (def.) before financing	39000	153000	131842.5
Financing:
Borrowing	21000
less:Repayments		21000
less: Interest paid		157.5		21000*9%*1/12
Ending Cash Bal.	60000	131842.5	131842.5