8. Historically, 60% of Rib Cribs sales are in cash (mainly at the fairs, auto shows, music festivals, etc.). However, 30% of sales are at the corporate events where the companies pay within 30 days, and 10% of sales are with corporate or government customers that pay within 60 days. Here is the six month sales forecast: May=90, June=170, July=210, August=230, September=160, October=100 Build a Receivables budget and tell me what receivables will be at the end of October.

9. Now heres the anticipated cash situation: As far as CoGS are concerned, they generally run 65% of sales, and the Rib Crib pays for 75% of that in cash, and the remaining 25% they pay within 30 days. The company has operating expenses of 20 per month. Financial expenses include interest amounting to 25/month on debt left over from purchasing the equipment a few years ago, and taxes that have typically been around 15/month. There are no dividends being paid out. There is one capital expenditurea new used Ford 150 to haul the crib, which will probably be bought in June for 45 (i.e., $45,000). The Rib Crib will receive a loan from the dealership at 0% interest (!), provided the Rib Crib pays off the loan in three equal instalments during July, August, and September. Develop a cash budget for the upcoming six-month season.

10. Finally, develop a short-term financing schedule for the Rib crib. Assume they want to have a cash balance of 25 at the start of every month.