Helen Bowers, owner of Helen's Fashion Designs, plans to apply for a line of credit from her bank. She has estimated the following company sales forecasts for parts of 2014 and 2015:

	mayo 2014	$186,000
	June	186,000
	Julio	372,000
	August	540.000
	September	720.000
	October	360.000
	November	360.000
	December	90.000
	January 2015	180.000

The estimates on the payments obtained from the credit department are the following: collected within the month of the sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month following the provision of these services. Here are the estimated costs for labor plus raw materials:

	mayo 2014	$90,000
	June	90.000
	Julio	126,000
	August	882,000
	September	306,000
	October	234,000
	November	163.000
	December	90.000

General and administrative salaries are approximately $28,000 per month. Lease payments under long-term leases are $9,000 per month. Depreciation charges are $36,000 per month. Miscellaneous expenses are $2,800 per month. Income tax payments of $64,000 are due in September and December. A progressive payment of $180,000 on a new design study is due in October. Cash on hand on July 1 will be $132,000, and a minimum cash balance of $90,000 must be maintained throughout the entire cash budget period.

Prepare a monthly cash budget for the last 6 months of 2014. If no entry is required, leave the cell blank. Use the minus sign to enter losses, outstanding loans, or any other negative amount.

Can

June

Julio

August

September

October

November

December

January

Bill of collections and purchases

Gross sales)

ps

ps

ps

ps

ps

ps

ps

ps

ps

collections

During the month of sale

ps

ps

ps

ps

ps

ps

ps

ps

During the first month after the sale

ps

ps

ps

ps

ps

ps

ps

ps

During the second month after the sale

ps

ps

ps

ps

ps

ps

ps

ps

total charges

ps

ps

ps

ps

ps

ps

shopping

Labor and raw materials

ps

ps

ps

ps

ps

ps

ps

ps

Payments for labor and raw materials.

ps

ps

ps

ps

ps

ps

ps

Cash gain or loss per month

collections

ps

ps

ps

ps

ps

ps

Payments for labor and raw materials.

ps

ps

ps

ps

ps

ps

General and administrative salaries

ps

ps

ps

ps

ps

ps

rent payments

ps

ps

ps

ps

ps

ps

Miscellaneous expenses

ps

ps

ps

ps

ps

ps

Income tax payments

ps

ps

ps

ps

ps

ps

Payment of the design study

ps

ps

ps

ps

ps

ps

total payments

ps

ps

ps

ps

ps

ps

Net cash gain (loss) for the month

ps

ps

ps

ps

ps

ps

Loan requirement or excess cash

Effective at the beginning of the month

ps

ps

ps

ps

ps

ps

cumulative cash

ps

ps

ps

ps

ps

ps

Target Cash Balance

ps

ps

ps

ps

ps

ps

Accumulated surplus of cash or loans

outstanding to maintain a target cash balance of $90,000

ps

ps

ps

ps

ps

ps

Prepare monthly estimates of required financing or excess funds, that is, the amount of money Bowers will need to borrow or have available to invest. Round your answers to the nearest cent. Enter the outstanding loans with the minus sign.

Julio	ps
August	ps
September	ps
October	ps
November	ps
December	ps