How would I make an analysis of cash requirements for the following?

? Purchases for the year for BBCC's most costly source of direct ingredients ?

vanilla flavouring. Base this on the 20X8 forecast sales, the budgeted costs

for BBCC's three products and BBCC's paying habits in Exhibit 8. Note: Show

all supporting schedules and calculations ? include production budget, direct

material usage budget ? vanilla, direct material purchase budget ? vanilla

and cash disbursement schedule for vanilla purchase. Round quantities to

litres.

? Cash requirements for the systems upgrade. Base this on the budget

provided in Table 4 in Exhibit 8 and the consultant's estimated payments as

outlined in the exhibit. How would I make a quarterly cash budget?

EXHIBIT 8

Cash budget

To compensate for this, a cash requirements budget for the coming year would be

useful. The information is below.

Production and cash requirements

The following tables provide the details required to prepare the production and

purchases budget for 20X8. Additional information is as follows:

BBCC's accounts payable payment policy is to pay 80% of purchases in the quarter

purchased and the remainder in the quarter following purchase.

When planning for ending chocolate bar inventories, the company's policy is to have

7% of the next quarter's sales available on hand at the end of the quarter for The-

Bar and Alamonde. Because Salt-Lick is made to order, no ending inventories of

bars are kept. Also, it plans to have 9% of next quarter's estimated ingredients

requirements on hand at the end of the quarter for all products.

I have been stuck on this practice problem for quite some time and can't seem to make any progress

Table 1: Sales forecasts for 20X8 and the first half of 20X9 Quarter The-Bar Alamonde Salt-lick Total 20X8 Q1 180,400 118,800 66,000 365,200 20X8 Q2 187,000 123,200 69,300 379,500 20X8 Q3 206,800 134,200 77,000 418,000 20X8 04 178.200 116.600 68,200 363.000 20X8 totals 752,400 492,800 280,500 1,525,700 20X9 Q1 188,600 124,200 69,000 381,800 20X9 Q2 193,200 127,650 70,150 391,000 Table 2: Ending inventories and last-quarter ingredients purchases The-Bar Alamonde Salt-Lick 12,628 8,316 0 Sugar Vanilla Almonds 482 kg 29 litres 23 kg Fourth-quarter 20X7 purchases Sugar Vanilla Almonds $3,800 $23,000 $2,500Table 3: Budgeted costs of ingredients (per 1,000 bars) Ingredients Price The-Bar Alamonde Salt-Lick Chocolate liquor $5.50 per kg $ 192.50 $ 192.50 $ 161.70 Cocoa butter $6.00 per kg 79.80 79.80 54.60 Cocoa powder $1.15 per kg 8.05 4.83 8.05 Cane sugar $0.70 per kg 9.31 9.31 14.46 Emulsifier $0.80 per kg 0.48 1.12 0.56 Vanilla $70.00 per litre 56.35 49.00 98.00 Almonds $10.00 per kg 0.00 21.00 0.00 Himalayan salt $5.50 per kg 0.00 0.00 9.63 Other 0.08 per bar 80.00 80.00 80.00 Total cost of ingredients $ 426.49 437.56 $ 426.99The consultant will bill BBCC quarterly using the following completion rates. The amount is considered due at the end of each quarter for the year. Note that hardware and software costs are billed in total at the beginning of the phase they are implemented. All other costs are based on percentage completion of the phase. YTD % completion Analysis Design Implementation January 25% 0 February 35% 10% March 50% 20% April 60% 25% May 75% 30% 0050 0 June 85% 40% 10% July 85% 45% 20% August 85% 50% 25% September 90% 60% 40% October 95% 70% 50% November 100% 80% 60% December 100% 75% The cash budget should account for these costs as billed by the consultant.Table 4: Budgeted costs for systems upgrade Alan has been working with an outside computer consultant in relation to an upgrade to BBCC's information systems. The purpose of this systems project is to do the following: . Integrate information systems between the cocoa bean and chocolate bar divisions. . Upgrade BBCC's software to a mid-range ERP (enterprise resource planning) system. The consultant has prepared the following budget for the project: PROJECT: Project Budget Networking and software upgrade Hoursjunk by development phone Contby development phone Implementrica Total count Labour Popci rings Applerion curbmumon and implementation End user training 1 144