Assignment: Cash Budget
Sales for Blue Bill Corporation are projected as follows for the months of June through November:
| June |
$200,000 |
| July |
200,000 |
| August |
200,000 |
| September |
300,000 |
| October |
500,000 |
| November |
200,000 |
Credit sales account for 70% of the monthy sales and are collected one month after the sale.
Other receipts for October are $50,000.
Variable disbursements are 60% of sales each month.
Fixed disbursements are $10,000 each month.
$80,000 should be included in August for taxes.
The company is obligated to make a $400,000 debt repayment in November.
Beginning cash in June is $50,000.
Desired ending cash each month is $10,000.
Complete the monthly cash budget for Blue Bill Corporation for June through November.
Blue Bill Corporation
Cash Budget |
| |
|
|
|
|
|
|
| |
June |
July |
August |
September |
October |
November |
| 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 |
|
|
|
|
|
|