Budgeting Problem

Cash Budget Sales for Blue Bill Corporation are projected as follows for the months of June through November: June July August September October November $200,000 200,000 200,000 300,000 500,000 200,000 Credit sales account for 70% of the monthy sales and are collected one month after the sale. Other receipts for October are $50,000. Variable disbursements are 60% of sales each month. Fixed disbursements are $10,000 each month. $80,000 should be included in August for taxes. The company is obligated to make a $400,000 debt repayment in November. Beginning cash in June is $50,000. Desired ending cash each month is $10,000. Complete the monthly cash budget for Blue Bill Corporation for June through November. Blue Bill Corporation Cash Budget Sales Cash sales Collections Other Receipts Total cash receipts Variable disbursements Fixed disbursements Other disbursements Total cash disbursements Net change during the month Beginning cash Ending cash Required cash Excess cash to invest Cash borrowed June July August September October November