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Kelly's Boutique Cash Budget 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Operating activities Operating cash receipts Product sales revenue $40,000 $40,800 $41,616 $42,448
| Kelly's Boutique Cash Budget | 1st Qtr. | 2nd Qtr. | 3rd Qtr. | 4th Qtr. | Year | ||||
| Operating activities | |||||||||
| Operating cash receipts | |||||||||
| Product sales revenue | $40,000 | $40,800 | $41,616 | $42,448 | $164,864 | ||||
| Collections in the quarter of sale | $32,000 | $32,640 | $33,293 | $33,959 | $131,891 | ||||
| Collections in the 1st quarter following a sale | $4,200 | $6,000 | $6,120 | $6,242 | $22,562 | ||||
| Collections in the 2nd quarter following a sale | $1,500 | 1,400 | $2,000 | $2,040 | $6,940 | ||||
| Operating cash receipts | $37,700 | $40,040 | $41,413 | $42,241 | $161,394 | ||||
| Operating cash payments | |||||||||
| Purchases | |||||||||
| Cost of expected sales | $22,000 | $22,440 | $22,889 | $23,347 | $90,675 | ||||
| Required ending inventory | $15,708 | $16,022 | $16,343 | ? | $0 | ||||
| Beginning inventory | -$11,000 | -$15,708 | -$16,022 | -$16,343 | -$59,073 | ||||
| Purchases | $26,708 | $22,754 | $23,209 | $7,004 | $79,675 | ||||
| Payments in the quarter of purchase | $22,702 | $19,341 | $19,728 | ? | $61,771 | ||||
| Payments in the 1st quarter following a purchase | ? | $2,671 | $2,275 | $2,321 | $7,267 | ||||
| Payments in the 2nd quarter following a purchase | ? | ? | $1,335 | $1,138 | $2,473 | ||||
| Cash payments for purchases | $22,702 | $23,347 | $23,339 | $3,459 | $72,846 | ||||
| Expenses | |||||||||
| Advertising expense | $900 | $900 | $900 | $900 | $3,600 | ||||
| Interest expense | $1,000 | $1,000 | $1,000 | $1,000 | $4,000 | ||||
| Payroll expense | $8,000 | $8,000 | $8,000 | $8,000 | $32,000 | ||||
| Supplies expense | $500 | $500 | $500 | $500 | $2,000 | ||||
| Utilities expense | $600 | $600 | $600 | $600 | $2,400 | ||||
| Expenses | $11,000 | $11,000 | $11,000 | $11,000 | $44,000 | ||||
| Operating cash payments | 33,702 | 34,347 | 34,339 | 14,459 | 116,846 | ||||
| Cash from (to) operating activities | $3,998 | $5,693 | $7,074 | $27,782 | -$116,846 | ||||
| Investing activities | |||||||||
| Equipment purchases | -$200,000 | -$200,000 | |||||||
| Other | |||||||||
| Cash from (to) investing activities | -$200,000 | -$200,000 | |||||||
| Financing activities | |||||||||
| Loan proceeds | $200,000 | $200,000 | |||||||
| Loan payments | -$4,200 | -$4,200 | -$8,400 | ||||||
| Cash from (to) financing activities | $200,000 | -$4,200 | -$4,200 | $191,600 | |||||
| Change in cash | $3,998 | $205,693 | -$197,126 | $23,582 | -$125,246 | ||||
| Beginning cash | $15,000 | $18,998 | $224,691 | $27,565 | $15,000 | ||||
| Ending cash | $18,998 | $224,691 | $27,565 | $51,148 | -$110,246 | ||||
| Assumptions | |||||||||
| First quarter sales | $ 40,000 | ||||||||
| Sales growth each quarter | 102% | ||||||||
| Collections in the quarter of sale | 80% | ||||||||
| Collections in the 1st quarter following a sale | 15% | ||||||||
| Collections in the 2nd quarter following a sale | 5% | ||||||||
| Previous years 4th quarter sales | $28,000 | ||||||||
| Previous years 3rd quarter sales | $30,000 | ||||||||
| Cost of expected sales | 55% | ||||||||
| Required ending inventory | 70% | ||||||||
| Beginning inventory | $11,000 | ||||||||
| Payments in the quarter of purchase | 85% | ||||||||
| Payments in the 1st quarter following a purchase | 10% | ||||||||
| Payments in the 2nd quarter following a purchase | 5% | ||||||||
| Purchases in the previous year's 4th quarter | $20,000 | ||||||||
| Purchases in the previous year's 3rd quarter | $17,000 | ||||||||
| Beginning cash | $15,000 | ||||||||
| Next year's 1st qtr. forecasted sales | $50,000 | ||||||||
| Advertising expense | $900 | ||||||||
| Depreciation expense | $800 | ||||||||
| Interest expense | $1,000 | ||||||||
| Payroll expense | $8,000 | ||||||||
| Supplies expense | $500 | ||||||||
| Utilities expense | $600 | ||||||||
| Loan proceeds | $200,000 | ||||||||
| Loan payment | $4,200 | ||||||||
| Equipment purchase | $200,000 | ||||||||
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Principles Of Cost Accounting
Authors: Edward J. Vanderbeck
15th Edition
978-0840037039, 0840037031
