Could I get an explanation on how to calculate the highlighted fields for CASH BUDGETS? The second photo are the directions
July 40,000 520,000 560,000 Cash Budget August September 35,050 35,435 693,000 779,500 728,050 814,935 Quarter 40,000 1,992,500 2,032,500 Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements For Inventory (From Purchasing Budget) For Operating Expenses (From Selling and Admin Budget) For Equipment For Cash Dividends For Interest (From Previous Month's Borrowing) Total Cash Disbursements Excess (Deficiency) of Cash Financing Borrowing Repayment Total Financing Cash Balance: Ending 280,950 213,000 200,000 50,000 0 $ 743,950 (183,950) 336,125 253,300 90,000 0 2,190 $ 681,615 46,435 288,000 196,750 0 0 2,080 486,830 328,105 905,075 663,050 290,000 50,000 4,270 1,912,395 120,105 219,000 (219,000) 219,000 0 219,000 35,050 0 (11,000) 11,000 35,435 0 (208,000) 208,000 120,105 120,105 $ $ Outstanding Loan Balance Interest on Borrowing (Due the following Quarter) MOST LIKELY NUMBERS AND ASSUMPTIONS SALES MANAGER PRIVATE INFORMATION Most likely sales July August September 600,000 $ 910,000 $ 475,000 $ October 385,000 PURCHASING MANAGER PRIVATE INFORMATION Most likely cost of merchandise as a % of sales Desired ending inventory as a percentage of next month's cost of sales Part 1 Information 45% 20% OPERATION MANAGER PRIVATE INFORMATION Most likely shipping expenses as a percent of sales Most likely other expenses as a percent of sales Salaries and wages (per month) Most likely advertising costs (per month) Most likely insurance costs (per month) Depreciation expense (per month) Part 1 Information 5.0% 8.0% 85,000 50,000 $ 3,000 25,000 Part 1 Information 30% 70% 50% 50% FINANCE MANAGER PRIVATE INFORMATION Percent sales collected in month of sale Percent sales collected in month after sale Percent of inventory purchases paid in month of purchase Percent of inventory purchases paid in month after purchase Percent of operating expenses paid in month of purchase Percent of operating expenses paid in month after purchase Desired minimum ending cash balance each month Borrow in increments of Monthly interest rate on borrowings (not compounded) 100% 0% $ 35,000 1,000 1% Other planned outlays of cash Capital expenditures Dividends July August September 200,000 $ 90,000 $ 50,000 $ $ SRS Educational Supply Company Balance Sheet Previous Year End Assets Current assets: Cash Accounts receivable Inventory Prepaid insurance Total current assets Buildings and equipment (net) TOTAL ASSETS 40,000 340,000 50,000 18.000 $ 448,000 $ 860.000 $ 1,308,000 Liabilities and Equity TAGA 130,000 $ 130,000 Liabilites Accounts payable Notes payable Total liabilities Stockholder's equity Capital stock Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 420,000 758.000 0 $ 1,178,000 $ 1.308.000
