Cash Budget
	2020
	October	November	December	QUARTER
Beginning Cash Balance
Cash Collections
Available Cash Balance
Cash Disbursements:
Direct Material Prior
Direct Material Current
Direct Labor
Overhead
S&A
Factory Update
Total Cash Disbursements
Borrowings
Interest
Repayments
ENDING CASH BALANCE

MUST SHOW WORK

A Sales & Collections 5 6 October 2020 30,000 November 2020 34,000 December 2020 55,000 January 2021 47,000 February 2021 32,000 $ 100.00 30% 50% 20% 7 Sales in Units (Sweaters) 8 9 Selling Price per Sweater 10 11 Cash Sales Collected in the Month of Sale 12 Credit Sales Collected in the Month of Sale 13 Credit Sales Collected in the Following Month 14 15 Inventory Policy 16 Ending FG Inventory Requirement 17 Ending FG Inventory, September 30, 2020 18 19 Product Input Expenses 20 Direct Materials 21 Ending RM Inventory, September 30, 2020 22 Yards of Wool Required per Sweater 23 Raw Materials Cost per Yard of Wool 24 Ending RM Inventory Requirement 3% of next months unit sweater sales 1,500 sweaters 8256.60 yards 4 yards per sweater 3.50 per yard 7% of next months sweater production needs 85% 15% 2 workers 0.5 hours 15.00 per hour 26 Wool Purchases Paid for in the Month of Purchase 27 Wool Purchases Paid for in the Month following the Purchase 28 29 Direct Labor 30 Number of Workers Required for the Making of Each Sweater 31 Labor Hours Required per Worker per Unit of FG (Sweater) 32 Labor Cost per Hour 33 34 Manufacturing Overhead 35 Variable Manufacturing Overhead 36 Fixed Manufacturing Overhead 37 Noncash Fixed Manufacturing Overhead (included in above) 38 39 Selling & Administrative Expenses 40 Variable S&A 41 Fixed S&A 42 Noncash Fixed S&A (included in above) $ $ $ 11.75 per sweater 30,200.00 per month (Oct.) 10,250.00 per month (Oct.) $ $ 30,750.00 per month (Nov. & beyond) 157,540.00 per month (Nov. & beyond) $ $ $ 7.37 per unit sold 23,900.00 per month 10,750.00 per month $ 400,500.00 paid on October 31, 2020 44 Factory Update & Cash Flow 45 Factory Update (PP&E) 46 47 Principle Borrowed on October 1, 2020 48 Principle Repaid on November 30, 2020 49 Interest Payment on Borrowings in October & November $ $ 300,000.00 300,000.00 4,500.00 per month (paid in following month) BC Lexie's Wool Sweaters Balance Sheet As of September 30, 2020 LIABILITIES & EQUITIES $ 150,000.00 Accounts Payable $ $ 75,000.00 Notes Payable $ 28,929.60 Interest Payable $ 61,125.00 TOTAL LIABILITIES $ $ 487,000.00 Retained Earnings $ $ 802,054.60 TOTAL LIABILITIES & EQUITY $ ASSETS 5 Cash 6 Accounts Receivable 7 Raw Materials Inventory 8 Finished Goods Inventory 9 PP&E, net | 10 TOTAL ASSETS 11 14,500.00 14,500.00 787,554.60 802,054.60