1. Given the following information:

75 percent of sales are for credit, and collections occur after thirty days. A $100,000 Treasury bill matures in March. Monthly fixed disbursements are $13,000. Variable disbursements are 62 percent of sales and occur one month prior to sales. A tax payment of $13,500 is due in February. The initial cash is $20,000. The minimum required cash balance is $5,000. Variable cash disbursements for April are $30,000.

Sales
January	0
February	60,000
March	80,000
April	100,000

Construct the firm's cash budget for the given months.

	January	February	March	April
Sales	?	?	?	?	?	?
Cash Sales	?	?	?	?	?	?
Collections	?	?	?	?	?	?
Other receipts	?	?	?	?	?	?
Total cash receipts	?	?	?	?	?	?
	?	?	?	?	?	?
Variable disbursements	?	?	?	?	?	?
Fixed disbursements	?	?	?	?	?	?
Other disbursements	?	?	?	?	?	?
Total cash disbursements	?	?	?	?	?	?
	?	?	?	?	?	?
Net change during the month	?	?	?	?	?	?
	?	?	?	?	?	?
Beginning cash	?	?	?	?	?	?
Ending cash	?	?	?	?	?	?
Required cash	?	?	?	?	?	?
Excess cash to invest	?	?	?	?	?	?
Cash borrowed	?	?	?	?	?	?

2. Given the following information:

   Sales
   June	$200,000
   July	200,000
   August	200,000
   September	300,000
   October	500,000
   November	200,000

   70% of the sales are for credit and are collected one month after the sale. Other receipts: $50,000 in October Variable disbursements: 60% of sales each month Other disbursements: $10,000 a month $80,000 for taxes in August $400,000 for debt repayment in November Beginning cash: $50,000 Desired cash: $10,000

	June	July	August	September	October	November
Sales	?	?	?	?	?	?
Cash sales	?	?	?	?	?	?
Collections	?	?	?	?	?	?
Other Receipts	?	?	?	?	?	?
Total cash receipts	?	?	?	?	?	?
	?	?	?	?	?	?
Variable disbursements	?	?	?	?	?	?
Fixed disbursements	?	?	?	?	?	?
Other disbursements	?	?	?	?	?	?
Total cash disbursements	?	?	?	?	?	?
	?	?	?	?	?	?
Net change during the month	?	?	?	?	?	?
	?	?	?	?	?	?
Beginning cash	?	?	?	?	?	?
Ending cash	?	?	?	?	?	?
Required cash	?	?	?	?	?	?
Excess cash to invest	?	?	?	?	?	?
Cash borrowed	?	?	?	?	?	?