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Cash budget: Quarter April May June Total Beginning cash balance $ 74,000 $ 50,000 $ 50,000 $ 174,000 Add cash receipts: Cash collections from sales
Cash budget: | ||||||||
Quarter | ||||||||
April | May | June | Total | |||||
Beginning cash balance | $ 74,000 | $ 50,000 | $ 50,000 | $ 174,000 | ||||
Add cash receipts: | ||||||||
Cash collections from sales | 436,000 | 695,000 | 865,000 | 1,996,000 | ||||
Total cash available | $ 510,000 | $ 745,000 | $ 915,000 | $ 2,170,000 | ||||
Less cash disbursements: | ||||||||
Purchases of inventory | 258,000 | 318,000 | 244,000 | 820,000 | ||||
Sales commissions | 26,000 | 40,000 | 20,000 | 86,000 | ||||
Advertising | 200,000 | 200,000 | 200,000 | 600,000 | ||||
Rent | 18,000 | 18,000 | 18,000 | 54,000 | ||||
Salaries | 106,000 | 106,000 | 106,000 | 318,000 | ||||
Utlities | 7,000 | 7,000 | 7,000 | 21,000 | ||||
Equipment | 16,000 | 40,000 | 56,000 | |||||
Dividends Paid | 15,000 | 15,000 | ||||||
Total disbursements | $ 630,000 | $ 705,000 | $ 635,000 | $ 1,970,000 | ||||
Cash excess (deficiency) | $ (120,000) | $ 40,000 | $ 280,000 | $ 200,000 | ||||
Financing: | ||||||||
Borrowing | 170,000 | 10,000 | - | 180,000 | ||||
Repayment (principal) | (180,000) | (180,000) | ||||||
Interest payment | (5,300) | (5,300) | ||||||
Total financing | 170,000 | 10,000 | (185,300) | (5,300) | ||||
Ending cash balance | $ 50,000 | $ 50,000 | $ 94,700 | $ 194,700 | ||||
Need help in the below section: 12 Percent Anual Interest Rate. | ||||||||
Calculations for June financing section: | ||||||||
Cash available for repayment | 230000 | |||||||
Interest on quarterly borrowing | -6900 | |||||||
Interest payment (all or nothing) | -6900 | |||||||
Remaining cash available for principal repayment | 223100 | |||||||
Remaining cash available rounded down | 223100 | |||||||
Total borrowing for April and May | 170,000 | 10,000 | ||||||
Total borrowing for April and May rounded down | 170,000 | 10,000 | ||||||
Principal repayment | -180000 |
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