Create the cash budget. The owner invested $29,000 in the company on the first day Beginning Cash Balance $0 Minimum cash balance $1,000 Interest = 1% per month on the balance COGS Purchases 60% of purchases paid in month, 40% paid next month Sales 90% cash, 10% on account and collected the next month Fixed Asset Purchases a. 1-service trunk = $25,000(Purchased in January) (60mo life, $3,000salvage value) b. 1-Laptop computer = $1,000 (purchased in January) (36mo life, $0 Salvage value) c. 1-LaserJet Printer = $500(Purchasedin July) (36mo life, $0 Salvagevalue) d. 3mechanic Tool Sets -$500 ea. (All purchased in July) (60mo life, $0 Salvage value) Michah Mack Auto Parts 1% 1% 5% 5% 5% 4% 4% 4% -3% -3% -3% 10% 15% Budget - Income Statement Standard Carburetors Units Jan 50.0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Year 2 Year 3 50.5 51.0 53.6 56.2 59.0 61.4 63.9 66.4 64.4 62.5 60.6 700 770 885 Sales Cost of Goods Sold Gross Profit 5,300 13,250 7,950 8,030 5,353 13,383 13,516 8,110 8,515 5,407 5,677 14,192 14,902 8,941 5,961 15,647 16,273 16,924 17,601 17,073 16,560 16,064 185,383 203,921 234,509 9,388 9,764 6,259 6,509 10,154 10,560 10,244 9,936 9,638 111,230 122,353 140,706 6,769 7,040 6,829 6,624 6,425 74,153 81,568 93,804 Cash Budget Cash Receipts: Beginning Cash Balance 0 Cash Infusion by Owner 29,000 Cash receipts (90% Current Month) 11,925 Cash Receipts (10% Prior Month) Total Cash Available 40,925 12,044 12,165 12,773 1,325 1,338 1,352 13,369 13,503 14,125 13,412 1,419 14,831 14,082 14,645 1,490 1,565 15,572 16,210 15,231 1,627 16,859 15,841 15,365 1,692 1,760 17,533 17,125 14,904 14,457 1,707 1,656 16,612 16,113 Cash Disbursements: COGS Purchases (60% Current Mo) COGS Purchases (40% Prior Mo) Operating Expenses Fixed Assets Total Cash Disbursments Cash Balance Loan Repayment (Enter as Negative) Interest Expense (Enter as Negative) Borrow to Meet Cash Min. Ending Cash Balance 4,770 4,818 3,180 4,866 5,774 5,780 5,109 5,365 3,212 3,244 3,406 5,785 5,812 5,841 5,633 3,576 5,870 5,858 6,093 6,336 6,146 3,755 3,905 4,062 4,224 5,934 5,960 5,987 5,966 5,962 5,783 4,097 3,974 5,946 5,926 26,000 2,000 36,544 13,777 13,863 14,165 14,611 15,080 17,548 15,958 16,385 16,336 16,005 15,683 4,381 (408) 3,972 (4) (360) (4) (41) 220 3,613 3,572 3,791 493 4,284 (1,338) 2,947 900 3,847 1,148 4,995 789 5,783 607 430 6,390 6,820