$8$ Cash Budget

Assume actual cash receipts and disbursements will follow the pattern below: $($Note: Receivables and Payables of $12/31/$x$1$ will have a cash impact in $202.)$

$16\mathrm{.}00\%$ of sales for the year are made in November and December. Since our customers have $60$ day terms those funds will be collected be collected in January and February.

$86\mathrm{.}00\%$ of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.

All other manufacturing and operating costs are paid for when incurred.

The budgeted depreciation expense is equal to $0\mathrm{.}6\%$ of the fixed manufacturing, selling and administrative expenses.

Minimum Cash Balance needed for $202,$$$160,000.$

I See The Light

Projected Cash Budget

For the Year Ending December $31,20$x$2$

Beginning Cash Balance

Cash Inflows:

Sales Collections:

Account Receivable $($Sales last year not collected$)$

Sales made and collected in $20$x$2$

Cash Available

Cash Outflows:

Purchases

Accounts Payable $($Purchases last year$)$

Purchases made and paid for in $202$

Other Manufacturing Costs

Direct Labor

Total Manufacturing Overhead

Selling and Administrative

Less: Depreciation

Total Cash Outflows

Budgeted Cash Balance before financing

Needed Minimum Balance

Amount to be borrowed $($if any$)$

Budgeted Cash Balance

Round dollars to two places, $##$.$##

$\{10\mathrm{.}02\}$

$\{10\mathrm{.}03\}$

$\{10\mathrm{.}04\}$

$\{10\mathrm{.}05\}$

$\{10\mathrm{.}06\}$

$\{10\mathrm{.}07\}$

$\{10\mathrm{.}08\}$

$\{10\mathrm{.}09\}$

$\{10\mathrm{.}10\}$