Cash Outflows:	Jan.	Feb	Mar.	Apr.	May	June
A. Estimated Sales	100	160	200	400	240	120
B. Purchases	Answer 1	Answer 2	Answer 3	Answer 4	Answer 5	Answer 6
C. Payment of Accounts Payable	70	Answer 7	Answer 8	Answer 9	Answer 10	Answer 11
D. Selling & Adm. Expenses	Answer 12	Answer 13	Answer 14	Answer 15	Answer 16	Answer 17
E. Total Cash Outflows (C+D)	Answer 18	Answer 19	Answer 20	Answer 21	Answer 22	Answer 23
Cash Inflows	Jan.	Feb	Mar.	Apr.	May	June
F. Estimated Sales	100	160	200	400	240	120
G. Collection Sales Last Month	60	Answer 24	Answer 25	Answer 26	Answer 27	Answer 28
H. Collection Sales 2 Months Ago	50	60	Answer 29	Answer 30	Answer 31	Answer 32
I. Total Cash Inflows (G+H)	Answer 33	Answer 34	Answer 35	Answer 36	Answer 37	Answer 38
Cash Flow Budget	Jan.	Feb	Mar.	Apr.	May	June
J. Beginning Cash Balance	Answer 39	Answer 40	Answer 41	Answer 42	Answer 43	Answer 44
K. Cash Inflow (I)	Answer 45	Answer 46	Answer 47	Answer 48	Answer 49	Answer 50
L. Total Cash Available (J+K)	Answer 51	Answer 52	Answer 53	Answer 54	Answer 55	Answer 56
M. Cash Outflow (E)	Answer 57	Answer 58	Answer 59	Answer 60	Answer 61	Answer 62
N. Net Cash Position (L-M)	Answer 63	Answer 64	Answer 65	Answer 66	Answer 67	Answer 68
O. Needed Borrowings	Answer 69	Answer 70	Answer 71	Answer 72	Answer 73	Answer 74
P. Loan Repayments	Answer 75	Answer 76	Answer 77	Answer 78	Answer 79	Answer 80
Q. Ending Cash Balance	Answer 81	Answer 82	Answer 83	Answer 84	Answer 85	Answer 86
R. Cumulative Borrowings	Answer 87	Answer 88	Answer 89	Answer 90	Answer 91	Answer 92

The Assumptions:

1. All sales are on credit.

2. Accounts Receivable Turnover Ratio = 8 = 45 days. This means that 1/2 of the customers pay one month after the sale and the other 1/2 pays two months after the sale.

3. Cost of Goods Sold is 70% of sales.

4. July sales are 100.

5. Accounts Payable Turnover Ratio = 12 = 30 days.

6. Monthly selling and administrative expenses are 40.

7. Beginning cash balance is 100.

8. Minimum cash balance is never less than 50.

9. Inventory Turnover Ratio = 12 = 30 days.