For the months of December and January, Joseph Pharmacy had sales of $25,000 and $30,000 respectively The business anticipates sales of $20,000 in February, $40,000 in March, $40,000 in April, and $30,000 in May No other source of cash flows exists Fifty percent of the sales are paid with cash, and twenty five percent are paid in cash for each of the two months following the sale The pharmacy has the following expenses 1 $1,500 monthly rent 2 $5,000 for wages each month 3 Purchases of fifty percent of next months sales 4 Cash Outlay 5 Twenty per in month purchased 6 Eighty percent in following month Calculate the projected Cash Receipts for the three months of February, March, and April Sales forecast December January February March April Cash Sales Collection of AR Lagged 1 Month Lagged 2 Months Other Cash Receipts Total Cash Receipts Calculate the projected Cash Disbursements for the same months A Schedule of Projected Cash Disbursements for Joseph Pharmacy Sales December January February March April Purchases (50 of next months sales) Current month 20 1 month lag 80 Rent payments Wages Salaries Total Indicate what the total cash balance would be at the end of these three months if the cash balance at the beginning of February was $1,500 February Cash balance Total Cash Receipts December January February March April Cash Disbursements Balance Balance from Feb April For the months of December and January, Joseph Pharmacy had sales of $25,000 and $30,000 respectively The business anticipates sales of $20,000 in February, $40,000 in March, $40,000 in April, and $30,000 in May No other source of cash flows exists Fifty percent of the sales are paid with cash, and twenty five percent are paid in cash for each of the two months following the sale The pharmacy has the following expenses 1 $1,500 monthly rent 2 $5,000 for wages each month 3 Purchases of fifty percent of next months sales 4 Cash Outlay 5 Twenty per in month purchased 6 Eighty percent in following month Calculate the projected Cash Receipts for the three months of February, March, and April Sales forecast December January February March April Cash Sales Collection of AR Lagged 1 Month Lagged 2 Months Other Cash Receipts Total Cash Receipts Calculate the projected Cash Disbursements for the same months A Schedule of Projected Cash Disbursements for Joseph Pharmacy Sales December January February March April Purchases (50 of next months sales) Current month 20 1 month lag 80 Rent payments Wages Salaries Total Indicate what the total cash balance would be at the end of these three months if the cash balance at the beginning of February was $1,500 February Cash balance Total Cash Receipts December January February March April Cash Disbursements Balance Balance from Feb April

For the months of December and January, Joseph Pharmacy had sales of $25,000 and $30,000 respectively. The business anticipates sales of $20,000 in February, $40,000

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Purchases

(50% of next months sales)

Current month .20

1 month lag .80

Rent payments

Wages/Salaries

For the months of December and January, Joseph Pharmacy had sales of $25,000 and $30,000 respectively. The business anticipates sales of $20,000 in February, $40,000 in March, $40,000 in April, and $30,000 in May. No other source of cash flows exists. Fifty percent of the sales are paid with cash, and twenty-five percent are paid in cash for each of the two months following the sale. The pharmacy has the following expenses:

1. $1,500 monthly rent

2. $5,000 for wages each month

3. Purchases of fifty percent of next months sales

4. Cash Outlay

5. Twenty per in month purchased

6. Eighty percent in following month

Calculate the projected Cash Receipts for the three months of February, March, and April.

Sales forecast	December	January	February	March	April
Cash Sales
Collection of AR: Lagged 1 Month Lagged 2 Months
Other Cash Receipts
Total Cash Receipts

Calculate the projected Cash Disbursements for the same months

A Schedule of Projected Cash Disbursements for Joseph Pharmacy

Indicate what the total cash balance would be at the end of these three months if the cash balance at the beginning of February was $1,500.