Input Data
Collections during month of sale				10%
Collections during month after sale				75%
Collections during second month after sale				15%
Lease payments				$9,000
Target cash balance				$90,000
General and administrative salaries				$27,000
Depreciation charges				$36,000
Income tax payments (Sep & Dec)				$63,000
Miscellaneous expenses				$2,700
New design studio payment (Oct)				$180,000
Cash on hand July 1				$132,000
Sales, labor, and RM adjustment factor				0%
a. Prepare a monthly cash budget for the last six months of the year.
			May	June	July	August	September	October	November	December	January
Original sales estimates			$180,000	$180,000	$360,000	$540,000	$720,000	$360,000	$360,000	$90,000	$180,000
Original labor and raw mat. estimates			$90,000	$90,000	$126,000	$882,000	$306,000	$234,000	$162,000	$90,000
Forecasted Sales
Sales (gross)
Collections
During month of sale
During 1st month after sale
During 2nd month after sale
Total collections
Purchases
Labor and raw materials
Payments for labor and raw materials
Payments
Payments for labor and raw materials
General and administrative salaries
Lease payments
Miscellaneous expenses
Income tax payments
Design studio payment
Total payments
Net Cash Flows
Cash on hand at start of forecast period
Net cash flow (NCF): Total collections