Your assignment is to create a monthly personal cash budget using Excel or any other spreadsheet software for your upcoming academic year, July 1, 2020 - June 30, 2021. Feel free to adapt in any way meaningful to you. Be sure to include all potential sources of income: Work income Scholarships/ grants Loans/Financial Aid Parental assistance And all potential expenses: Tuition room/board Books Food Rent Utilities Transportation Cell phone Internet Entertainment Clothes Make it as realistic as you can, but as is the case with a budget in some cases you have to estimate. Remember that every month will not be the same. Some months you have other obligations (think about December and gifts) or maybe you have a family event coming up where you may need extra cash. Master Budgets Exhibit 22-16 shows the completed cash budget. Take time to carefully examine the document to ensure you understand the calculations. Pay special attention to the Total col- umn of the cash budget. As with the production budget and direct materials budget, you cannot simply add across each row to determine the total amounts because this is a sum- mary for the entire year. For example, the beginning cash balance for the year is the same as the beginning cash balance for the first quarter, and not the sum of the beginning balances for each quarter. Exhibit 22-16 Completed Cash Budget SMART TOUCH LEARNING Cash Budget For the Year Ended December 31, 2021 Second Fourth Quarter First Third Quarter Quarter Quarter Total S 15,000 $ 30,285 S 30,190 5 32,995 %24 15,000 1,129,000 Beginning cash balance Cash receipts 250,000 268,000 293,000 318,000 Cash available 265,000 298,285 323,190 350,995 1,144,000 Cash payments: Capital expenditures 40,000 40,000 40,000 40,000 160,000 Purchases of direct materials 68,825 81,525 92,625 100,125 343,100 Direct labor 30,750 42,000 45,750 49,500 168,000 Manufacturing overhead 23,640 26,640 27,640 28,640 106,560 Selling and administrative expenses 60,000 60,250 60,500 60,750 241,500 Income taxes 17,500 17,500 17,500 17,500 70,000 Interest expense 180 180 360 Total cash payments 240,715 268,095 284,195 296,515 1,089,520 Ending cash balance before financing 24,285 30,190 38,995 54,480 54,480 Minimum cash balance desired (30,000) (30,000) (30,000) (30,000) (30,000) Projected cash excess (deficiency) (5,715) 190 8,995 24,480 24,480 Financing: Borrowing 6,000 6,000 Principal repayments (6,000) (6,000) (6,000) S 32,995 Total effects of financing 6,000 Ending cash balance $ 30,285 S 30,190 $ 54,480 54,480 The budgeted financial statements are the next step in the budgeting process, and the cash budget provides several amounts needed. The interest expense calculations are carried to the budgeted income statement, and the ending cash balance is carried to the budgeted balance sheet. Smart Touch Learning repaid all amounts borrowed during the year. If those amounts had not been repaid in full, the balance would be carried to the budgeted balance sheet as the balance for Notes Payable.