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

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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

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.