Cash Budget Analysis . Using the below cash budget answer the following questions: 1. Which months have a negative cash flow?

2. Which month/s require financing.

3. List 2 methods of funding cash shortfalls with a brief (2-4 sentences) explanation.

Cash budget	Aug	Sept	Oct	Nov	Dec.
Sales	200	300	400	300	200
Cash	40	60	80	60	40	20.0%
AR-1 mo		80	120	160	120	40.0%
AR-2 mo			80	120	160	40.0%
Other cash receipts					30
Total cash receipts	40	140	280	340	350
Purchases	120	180	280	180	120	0.60
Cash	12	18	28	18	12	10.0%
AP-1 mo		72	108	168	108	60.0%
AP-2 mo			36	54	84	30.0%
Rent			10	10	10
Wages			80	60	40
Tax					25
Fix Assets				70
Interest					10
Dividend			20
Principal	removed
Total cash disp	12	90	282	380	289
Cash Budget			Oct.	Nov.	Dec.
Cash Receipts			280	340	350
Less Cash Disb.			282	380	289
Net cash flow			-2	-40	61
Add: Beg. Cash			50	48	8
End Cash			48	8	69
Less minimum cash balance			25	25	25
Required Financing (notes payable)				-17
Excess cash (marketable securities)			23