\begin{tabular}{|c|c|c|c|} \hline Cash Budgeting & & & \\ \hline Monthly salary & $4,800 & & \\ \hline Monthly rent & $2,800 & & \\ \hline December tax payment & $14,000 & & \\ \hline Current cash on hand, December 1 & $700 & & \\ \hline Target cash balance & $7,000 & & \\ \hline November purchases & $150,000 & & \\ \hline December sales & $130,000 & & \\ \hline December purchases & $25,000 & & \\ \hline January sales & $32,000 & & \\ \hline January purchases & $25,000 & & \\ \hline February sales & $62,000 & & \\ \hline February purchases & $25,000 & & \\ \hline Cash Budget: & December & January & February \\ \hline Sales (Collections) & $130,000 & $32,000 & $62,000 \\ \hline Purchases & $25,000 & $25,000 & $25,000 \\ \hline Payments: & & & \\ \hline For purchases & & & \\ \hline Salary & $4,800 & $4,800 & $4,800 \\ \hline Rent & $2,800 & $2,800 & $2,800 \\ \hline Taxes & $14,000 & & \\ \hline Total payments & & & \\ \hline Cash at start of forecast & $700 & & \\ \hline Net cash flow & & & \\ \hline Cumulative NCF & & & \\ \hline Target cash balance & $7,000 & $7,000 & $7,000 \\ \hline Surplus cash or loans needed & & & \\ \hline Suppose firm sells on credit: & & & \\ \hline Number of days customers have to pay & 30 & & \\ \hline Company loan requirements on December 31 & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Cash Budgeting & & & \\ \hline Monthly salary & $4,800 & & \\ \hline Monthly rent & $2,800 & & \\ \hline December tax payment & $14,000 & & \\ \hline Current cash on hand, December 1 & $700 & & \\ \hline Target cash balance & $7,000 & & \\ \hline November purchases & $150,000 & & \\ \hline December sales & $130,000 & & \\ \hline December purchases & $25,000 & & \\ \hline January sales & $32,000 & & \\ \hline January purchases & $25,000 & & \\ \hline February sales & $62,000 & & \\ \hline February purchases & $25,000 & & \\ \hline Cash Budget: & December & January & February \\ \hline Sales (Collections) & $130,000 & $32,000 & $62,000 \\ \hline Purchases & $25,000 & $25,000 & $25,000 \\ \hline Payments: & & & \\ \hline For purchases & & & \\ \hline Salary & $4,800 & $4,800 & $4,800 \\ \hline Rent & $2,800 & $2,800 & $2,800 \\ \hline Taxes & $14,000 & & \\ \hline Total payments & & & \\ \hline Cash at start of forecast & $700 & & \\ \hline Net cash flow & & & \\ \hline Cumulative NCF & & & \\ \hline Target cash balance & $7,000 & $7,000 & $7,000 \\ \hline Surplus cash or loans needed & & & \\ \hline Suppose firm sells on credit: & & & \\ \hline Number of days customers have to pay & 30 & & \\ \hline Company loan requirements on December 31 & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}