HM 336 - Cash Budget Assignment 1. Use the assumptions detailed in columns A through G to build the semiannual budgeted Income statement. 2. Use the following information to complete the cash budget for Motel 9 a. The beginning balance for the motel is $25,000 b. The financial controller estimates that Motel 9 requires a minimum cash balance of $35,000 at the beginning of each month. c. 35% of the monthly revenues are booked as account receivables. The average collection period for the receivables is one month d. Monthly goods and inventory purchases represent 15% of total revenues, of which 40% is booked as account payable e. The terms of the sales allow the hotel to defer the payment of the account payable by a month f. Payroll Expenses equal 80% of the monthly budgeted "Total departmental Expenses" g. Operating expenses include: 20% of the total departmental expenses Administrative, Maintenance & Utility Payments of operating expenses are due on the 15th of the following month h. Property taxes (Income statement) are due quarterly in March and June i. Insurance premiums are due quarterly in January and April j. A monthly mortgage Payment amount to $85,000 k. In April the hotel will acquire new ice machines at a total cost of $85000 l. The hotel has a line of credit with a 4.5% yearly interest rate. The loans will be settled at the end of the year.

Excel link: https://docs.google.com/spreadsheets/d/1m3C-iyT0lkSwRnc-8R6qbdqB721DXPhn6wQzu1NEdZc/edit?usp=sharing