D Assume actual cash receipts and disbursements will follow the pattern below. (Note: Receivables and Payables of 12/31/1 will have a cash impact in 2012.) 1. 20.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February 2. 80.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. All other manufacturing and operating costs are paid for when incurred 4 The budgeted depreciation expense is equal to 0.6% of the fined manufacturing, selling and administrative expenses. 55 Minimum Cash Balance needed for 2012, $150,000 I See The Light Projected Cash Budget For the Year Ending December 31, 2012 Beginning Cash Balance 80 30 91 92 Cash Inflows Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 2012 93 Cash Available 94 04 105 106 107 106 116 Cash Outflows Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 2012 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less Depreciation Total Cash Outflows Budgeted Cash Balance before financing 174 Needed Minimum Balance 135 106 Amount to be borrowed (if ang) Budgeted Cash Balance 340 Ready Introduction FAQ 1 2 3 4 5 Accessibility Investigate 9 Round dollars to two places, $# 10.02) 10.03 30.04) 10.05 (10.06) 10.07 30.00 10.09 10.10 7 8 9 10 41 9.1 U Wrong 42 9.11 0 Wrong