Following Data related to cash of SAODO company

Beginning Cash Balance of July $10,000

Minimum cash Required at ending of each month is $10,000 , it has an ability to borrow from a bank to reach for minimum required cash at monthly interest rate 1% and repay the loan in month has sufficient cash fund

Estimated sales: for July is $180,000 and for August is $220,000

Estimated FG Purchases: for July is $140,000 and for August is $180,000

operating Expenses include $5000 monthly depreciation: for July is $50,000 and for August is $40,000

the policy of Company is collect cash from customer as following :90% in same month, 10% in following month

and pay to supplier for FG purchases as following: 50% in same month and 50% in following month

paid operating expense in same month occurred except depreciation

there is no A/R or A/P at beginning of July

Prepare cash budget for July and August

July

August

Beginning Cash Balance

Add: Cash Receipts:

Cash Collection from Customers

Cash Available

Less Cash Disbursements:

Cash Paid to Suppliers

Cash Paid to Operating Expenses

Total Cash Disbursements

Excess (deficiency) cash available over cash disbursed

Financing:

Add: Borrowings

Less: Loan Repayment

Less: Interest

................................... managerial accounting

Ending Cash Balance