1 Chapter 18 Worksheet 2 Cash budget 3 4 5 6 At the beginning of the first quarter fiscal year 2020, Callahan's Inc. has a cash balance of $460. During the quarter, the company collects the quarter's sales plus the beginning NR balance. Gallahan's material cost is 55% of sales and they purchase the material a quarter before the sale. Their accounts payable period is 25 days and the beginning A/P balance is $73. They have debt of $800 for which they pay 2.5% interest every quarter. They also have a tax payment of $70 every quarter, Wages and other expenses are 20% of sales Prepare a cash budget for Callahan's for their fiscal year 2020 based on the below sales forecast Suggest a minimum amount of cash you feel they should always maintain, use your suggestion to calculate surplus/deficit, and explain your reasoning. 16 Sales Forecast 04419 $480 Q1FY20 $480 Q2FY20 $560 QIFY20 $600 $800 $800 Cash Budget FY2020 01 03 04 Beginning Balance Total Cash Collection A/P Paid Interest Tax Payments Wages & Other Expenses - Total Cash Disbursements 37 Ending Balance Minimum Balance 41 Surplus/Deficit 43 Explain: Sheet1 + Ready