Loblaw Manufacturing

Cash Budget

June $2017$ to October $2017$

April May June July August September October November

Sales $186,875219,375279,500230,750196,625151,125123,500131,625$

Collections:

Cash $15\%$

First Month $75\%$

Second Month $10\%$

Total Collections

Purchases $55\%$

Payments:

During Month $40\%$

Month After $60\%$

Total Payments

Collections

Disbursements:

Inventory Payments

Short$-$term Interest

Other Payments $130,000121,875113,75081,25073,000$

Total Disbursements

Beginning Cash Balance

Net Additions to Cash

Unadjusted Cash Balance $30,000$

Add: Current Borrowing

Ending Cash Balance

Cumulative Borrowing

Minimum Cash Balance $25,000$

Discount for Paying in Same Month $2\mathrm{.}00\%$

Annual Interest Rate $4\mathrm{.}00\%$

Monthly Interest Rate $0\mathrm{.}33\%$

Total Interest Cost $-$