Chapter 18 - Midwest Tire Company Input Area 01 1550 S 1,600 prior Credit sales Credit purchases Cash disbursements 1,500 S 1,400 $ 1,700 $ Wages, taxes, and expenses Intcrest 180 80 168 80 204 80 186 80 AR at the beginning of the year 600 Collection Period Payable Period Collections from current period sales Collection from prior period sale Payables on current period purchases Payables on prior period purchases 60 60 33% 67% 33% 67% % of purchases for next Q sales Wages, tax, other as % of sales Interest & Dividend Minimum Cash Balance Borrowing rate Invested securities 75% 12% 80 800 2% 1% Building a Cash Budget Cash Collections A.R. beginning- Cash collections from prior period credit sales$ Cash collections from current period credit sales Total cash collections 600 500 S 1,100 A.R. Ending Cash Disbursements Payment for purchases from prior period Payment for purchases from current period Total Payments for purchases Wages, taxes, and other expenses LT Financing (Interest and Dividends) Total cash disbursements Opearting Cash Flow: Cash inflow Cash outflow Net Cash Flow Building a Short-term Financial Plan Target/Beginning Cash Balance Net Cash Flow O1 $800.00 O2 $0.00 03 $0.00 04 $0.00 ST Investments: Interest Income New Investment Investment sold Net cash flow-investment ST Borrowing: Interest Cost New Borrowing Borrowing repaid Net cash flow-borrowin Ending Cash Balance WORKSHEET FOR ST INVESTMENT Investments Beginning Balance Investments Ending Balance WORKSHEET FOR ST BORROWING Borrowing Beginning Balance Borrowing Ending Balance