Cash Budget exercise (in 000) Ending Balance Q1 Q2 Q3 Q4 5,0 2,0 3,5 3,9 2,0 35,0 45,0 45,0 25,0 Beginning Cash Balance Cash Receitps Collection from Customers Sale of Assets Tax Returns Total Cash Receipts 50,0 15,0 5,0 70,0 5,0 40,0 45,0 45,0 Total Cash Available 45,0 47,01 73,5 48,9 10,0 Cash Payments Direct Materials Direct Labor Selling and Admin Taxes Purchase of Equipment 22,0 15,0 8,0 20,0 15,0 8,0 23,0 16,5 8,0 8,0 11,0 25,0 16,5 8,0 11,0 Total Cash Payments 45,0 43,0 66,5 60,5 Excess or Deficiency 0,0 4,01 7,0 -11,6 Financing - Interest 0,5 0,5 0,5 0,5 2,6 Repayments + Borrowings 2,5 14,1 Ending Cash Balance 2,00 3,5 3,9 2,0 Customer sales: 50.000 in Q1, Q2 & Q3 40.000 in 24 Collection terms: 50% in the same Quarter that were invoiced, 40% on the following and 10% in the next Balance of Cash Collection from previous year: 10.000 to be paid in Q1 Tax returns, 2 of 5.000 one in Q1 & one in Q3 An old equipment was sold cash in Q3 at: 15.000 Average Materials'spending: 20.000 Q1 & Q2 25.000 Q3 & Q4 Payment terms of Direct Materials: 60% in the invoiced Q and 40% in the following Balance of Materials payments from last year: 10.000 SG&A costs are fixed through the year Labor cost is partially variable with a: 10% increase in Q3 A new equipment is bought in Q3 at: 55.000 Payment of new equipment: 20% the same Q, 20% in Q4 and the rest in the following year Depreciation of the old equipment is: 10.000 per a Taxes are: 8.000 in total to be paid in Q3 No matter what we need to pay a minimum of: 500 of interest per Q for an old borrowing There should not be a negative cash (deficiency) The Ending cash balance per Q should be at least: 2.000 if it is lower the difference should be borrowed. Initial Cash Balance of the year is: 5.000 The money borrowed should be paid at full when cash available at 2% interest per quarter Cash Budget exercise (in 000) Ending Balance Q1 Q2 Q3 Q4 5,0 2,0 3,5 3,9 2,0 35,0 45,0 45,0 25,0 Beginning Cash Balance Cash Receitps Collection from Customers Sale of Assets Tax Returns Total Cash Receipts 50,0 15,0 5,0 70,0 5,0 40,0 45,0 45,0 Total Cash Available 45,0 47,01 73,5 48,9 10,0 Cash Payments Direct Materials Direct Labor Selling and Admin Taxes Purchase of Equipment 22,0 15,0 8,0 20,0 15,0 8,0 23,0 16,5 8,0 8,0 11,0 25,0 16,5 8,0 11,0 Total Cash Payments 45,0 43,0 66,5 60,5 Excess or Deficiency 0,0 4,01 7,0 -11,6 Financing - Interest 0,5 0,5 0,5 0,5 2,6 Repayments + Borrowings 2,5 14,1 Ending Cash Balance 2,00 3,5 3,9 2,0 Customer sales: 50.000 in Q1, Q2 & Q3 40.000 in 24 Collection terms: 50% in the same Quarter that were invoiced, 40% on the following and 10% in the next Balance of Cash Collection from previous year: 10.000 to be paid in Q1 Tax returns, 2 of 5.000 one in Q1 & one in Q3 An old equipment was sold cash in Q3 at: 15.000 Average Materials'spending: 20.000 Q1 & Q2 25.000 Q3 & Q4 Payment terms of Direct Materials: 60% in the invoiced Q and 40% in the following Balance of Materials payments from last year: 10.000 SG&A costs are fixed through the year Labor cost is partially variable with a: 10% increase in Q3 A new equipment is bought in Q3 at: 55.000 Payment of new equipment: 20% the same Q, 20% in Q4 and the rest in the following year Depreciation of the old equipment is: 10.000 per a Taxes are: 8.000 in total to be paid in Q3 No matter what we need to pay a minimum of: 500 of interest per Q for an old borrowing There should not be a negative cash (deficiency) The Ending cash balance per Q should be at least: 2.000 if it is lower the difference should be borrowed. Initial Cash Balance of the year is: 5.000 The money borrowed should be paid at full when cash available at 2% interest per quarter