1. Given the following information:
75 percent of sales are for credit, and collections occur after thirty days.
A $1
0
0,000 Treasury bill matures in
March
.
Monthly fixed disbursements are $13,000.
Variable disbursements are 62 percent of sales and occur one month prior to sales.
A tax payment of $13,500 is due in
February
.
The initial cash is $20,000.
The minimum required cash balance is $5,000.
Variable cash disbursements for
April
are $30,000.
|
Sales |
|
|
January |
0 |
| February |
60,000 |
| March |
80,000 |
| April |
100,000 |
Construct the firm’s cash budget for the given months.
2. Given the following information:
|
June |
$ 200,000 |
||
|
July |
200,000 | ||
|
August |
|||
|
September |
300,000 |
||
|
October |
500,000 |
||
|
November |
3.
70% of the sales are for credit and are collected one month after the sale. Other receipts: $50,000 in October
Variable disbursements: 60% of sales each month
Other disbursements: $10,000 a month
$80,000 for taxes in August
$400,000 for debt repayment in November
Beginning cash: $50,000
Desired cash: $10,000
Prepare a monthly cash budget for this firm.
| January | February | March | April | ||
| Sales | |||||
| Cash Sales | |||||
| Collections | |||||
| Other receipts | |||||
| Total cash receipts | |||||
| Variable disbursements | |||||
| Fixed disbursements | |||||
| Other disbursements | |||||
| Total cash disbursements | |||||
| Net change during the month | |||||
| Beginning cash | |||||
| Ending cash | |||||
| Required cash | |||||
| Excess cash to invest | |||||
| Cash borrowed |
| June | July | August | September | October | November |
| Cash sales | |||||
| Other Receipts |
