1 Cash Budget Sales for Blue Bill Corporation are projected as follows for the months of June through November: 5 June $200,000 6 July 200,000 7 August 200,000 8 September 300,000 9 October 500,000 10 November 200,000 11 12 Credit sales account for 70% of the monthy sales and are collected one month after the sale. 13 Other receipts for October are $50,000. 14 Variable disbursements are 60% of sales each month. 15 Fixed disbursements are $10,000 each month. 16 $80,000 should be included in August for taxes. 17 The company is obligated to make a $400,000 debt repayment in November. 18 Beginning cash in June is $50,000. 19 Desired ending cash each month is $10,000. Problem 1 27 June DEF August September October November 28 Sales 29 Cash sales 30 Collections 31 Other Receipts 32 Total cash receipts 33 34 Variable disbursements 35 Fixed disbursements 36 Other disbursements 37 Total cash disbursements 38 39 Net change during the month 40 41 Beginning cash 42 Ending cash 43 Required cash 44 Excess cash to invest 45 Cash borrowed Problem 1 - Ae