Cash Flow Budget Assumptions:

• Beginning balance is $20,000
• Cost of goods sold is 80% of sales
• Building rent is $3,000 a month
• Accounts payable turnover ratio is 12
• Accounts receivable ratio is 6
• Inventory turnover ratio is 6
• A quarter of sales are paid in cash
• Minimum cash balance is never less than $5,000

Fill in the blanks

Cash Flow Budget \begin{tabular}{|l|l|l|l|} \hline Inflow & $7,000 & $13,500 \\ \hline Beginning Cash Balance & $20,000 & $14,000 & $7,850 \\ \hline Total Cash Inflow & $9,000 & $11,250 & $13,500 \\ \hline Total Cash Available & $29,000 & $25,250 & $21,350 \\ \hline Total Cash Outflow & $15,000 & $17,400 & $19,000 \\ \hline Net Cash Balance & $14,000 & $2,350 \\ \hline Borrow/Repay & $ & $ & $2,650 \\ \hline Ending Cash Balance & $14,000 & $7,850 & \\ \hline Cumulative Borrowing & $ & $ & \\ \hline \end{tabular}