1 2 Sales 3 Cash Sales 4 Credit Sales 5 COGS 6 7 8 9 Cash Sales 10 Credit Sales 11 Total Collections 12 A B D E F September October November December January 280,000 400,000 600,000 300,000 200,000 56,000 80,000 120,000 60,000 40,000 224,000 320,000 480,000 240,000 160,000 168,000 240,000 360,000 180,000 120,000 A. Schedule of Expected Cash Collections October November December Quarter 80,000 120,000 60,000 260,000 480,000 320,000 480,000 1,280,000 560,000 440,000 540,000 1,540,000 13 14 15 Budgeted Cost of Goods Sold 16 Add Desired Ending Inventor 17 Total Needs 18 Less Beginning Inventory 19 Required Purchases 20 21 22 C. Schedule of Cash Disbursements for Purchase B. Inventory Purchases Budget October November December Quarter 240,000 360,000 180,000 780,000 90,000 45,000 30,000 30,000 330,000 405,000 210,000 810,000 78,000 90,000 45,000 78,000 252,000 315,000 165,000 732,000 October November December Quarter 23 September Purchases 193,000 193,000 24 January Purchases 126,000 126,000 252,000 25 February Purchases 157,500 157,500 315,000 26 March Purchases 82,500 82,500 27 Total Cash Disbursements 319,000 283,500 240,000 842,500 28 29 D. Schedule of Cash Disbursements for Expenses 30 October November December Quarter 31 Salaries and Wages 27,000 27,000 27,000 81,000 32 Advertising 70,000 70,000 70,000 210,000 33 Shipping 20,000 30,000 15,000 65,000 34 Other Expenses 12,000 18,000 9,000 39,000 35 Total Cash Disbursements 129,000 145,000 121,000 395,000 36 37 E. Cash Budget 38 October November December Quarter $62,000 $162,000 $171,800 39 Cash Balance, Beginning 40 Add Cash Collections 41 Total Cash Available 560,000 $622,000 440,000 $602,000 $62,000 540,000 1,540,000 $711,800 $1,935,800 42 Less Disbursements: 43 For Inventory 319,000 283,500 240,000 842,500 44 For Selling & Admin Expens 129,000 145,000 121,000 395,000 45 For Equipment 46 For Cash Dividends 45,000 1,700 0 84,500 86,200 0 47 Total Cash Disbursements 493,000 430,200 445,500 1,323,700 48 Excess (Deficiency) of Cash $129,000 $171,800 $266,300 $612,100 49 Financing needed 50 Borrowing 33,000 33,000 51 Repayments 0 33,000 -33,000 52 Interest 53 Net Borrowings 33,000 0 165 33.165 -165 -165 54 Cash Balance, Ending $162,000 $171,800 $299.465 $611,935