Question

Online Pictures Screenshot at Get Add-ins D 71 Equation 12 Symbol Shapes > ll e Pivot Table Recommended Table Pivot Tables Pictures Recommended W PivotChart My Add-ins - Line Column Wind Slicer Timeline Link SmartArt 3D Map Tours Text Box Header Footer Charts Loss Tables Illustrations Add-ins Charts Sparklines Filters Links Symbols R26 G H I J K N O P Q R S T U A 1 Prepare a Cash Budget ACTUAL Nov BUDGET March Total Qtr lan 380,000 $ $ 300,000 $ 200,000 $ 403,750 $ 427,500 $ 1,211,250 38,000 242,250 Cash Receipts 4 Sales Revenues 5 Cash Receipts from: 62 months ago (10%) 7 month ago (60% 8 current month (25%) total cash receipts 10 Cash Dubursements 11 Raw Materials 12 Selling Expenses 13 Administrative Expenses 14 total disbursements Net Operating Cash 38 000 242,250 302,813 583,063 (A) Calculate, based on the collection Nistory, the cash receipts from customers (B) Calculate the cash disbursements for raw material purchases, assuming 1/2 of the previous month's purchases are paid in the current month Total Purchases December Lanuary February March $ 53,684 $ 102,000 $ 108,375 $ 114,750 95,000 95,000 $ $ 100,938 $ 387,125 $ 86,100 60,000 146,100 $ (51,100) $ 105.18 90.896 63,000 259,044 $ (158,106) $ 111.563 95.238 66,150 273,450 S 113,675 S 216,750 272,694 189,150 678,594 195,531) (c) Decide in which month you will make a capital investment of $300,000 (D) Determine the appropriate financing activities so as to keep at least the required minimum cash balance of $ 75,000 and payoff any amount borrowed 15 $ 17 Investments: 18 Expand Business 20 Financing 21 New Debt 22 Repay debt $ 24 Net Cash Flow 25 Beginning Cash Balance 26 Ending Cash Balance (51,100) $ 75,000 23,900 $ (158, 106) $ 23,800 (134,206) S 113,675 $ (134,206) (20,531) S 195,531) 75,000 (20,531) $ 28 THE MINIMUM CASH BALANCE IS $ 75,000 Operating Budget Cash Budget Variances Decisions Capital

Answer 1

Answer is given below

Capital Investment is made in the month of January itself

Actual Nov Dec Jan Feb Mar Total $300,000 $200,000 $380,000 $403,750 $427,500 $1,211,250 Working notes: (A) Cash Receipts Sales Revenue Cash receipts from: 2 month ago(10%) 1 month ago (60%) Current month( 25%) Total Cash receipts Cash Disbursements Raw materials Selling expenses Administrative expense Total disbursements Net Operating cash $30,000 $20,000 $38,000 $120,000 $228,000 $242,250 $95,000 $100,938 $106,875 $245,000 $348,938 $387,125 $88,000 $590,250 $302,813 $981,063 Dec $53,684 Total Purchase Jan Feb $102,000 $108,375 Mar $114,750 February March (B) $77,842 $105,188 $111,563| $86,100 $90,856 $95,738 | $60,000 $63,000 $66,150 | $223,942 $259,044 $273,451 $21,058 $89,894 $113,675 $294,592 $272,694 $189,150 $756,436 $224,627 January $26,842 $51,000 December purchase January Purchase February purchase March Purchase Total Payments for purchase $51,000 $54,188 $54,188 $57,375 $111,563 $77,842 $105,188 Investments Expand Business (C) $300,000 $300,000 Financing New Debt Repay Debt (D) $278,942 $89,894 $113,675 $278,942 $203,569 Net cash flow Beginning cash balance Ending cash balance $0 $0 | $75,000 $75,000 $75,000 $75,000 $0 $75,000 $75,000 $75,000 $75,000 The minimum cash balance is $75,000