Note:

1. No interest is payable on the borrowings undertaken from the interest free borrowing facility. Also, the principal borrowed amount does not need to be paid for 6 months from the date of borrowing, so you should assume the any amount borrowed under the facility will not be paid back in M1 to M3
2. Ending Cash Balance = Excess of Total Cash + Total Effects of Financing + Opening Cash

Q.3. Good is currently selling products worth $50k per month and expects the sales to increase to $75k per month in the following manner: MO $50 M1 $65 M2 $70 M3 $75 Revenue Ending Inventory $50 $51 $53 $50 Good sells -75% of its revenues for cash, while the balance 25% is sold on credit. The credit revenues are collected as cash in the following month. Cost of Goods Sold (COGS) is approximately 33% of revenues. Note that Purchases = Ending Inventory + Cogs - Beginning Inventory. Good makes 50% of purchases in cash, while the balance 50% is purchased on credit, which is paid as cash in the following month. The Ending Inventory balance is provided in the table above Company's wage bill is $5k per month, and is paid 50% cash in the same month and 50% in the cash in the following month. Similarly, Sales Commission is paid @ 5% of Sales per month is paid 50% cash in the same month and 50% in the cash in the following month. Miscellaneous cash expenses and rental expenses per month are $3k and $5k respectively. In M2, Good will have to purchase a truck for $150k for its supply chain operations. The beginning cash balance in M1 is $100k. Furthermore, Good must keep a minimum cash balance of $50k in its bank account every month in adherence to its policy. Good also has an interest free borrowing facility of $100k under the Make in India program from State Bank of India, to finance any short-term needs. Please prepare the following schedules: 3. Prepare the Wages and Commissions Schedule and calculate cash disbursements from M1 to M3 4. Prepare a partial Operating Schedule and calculate the Total Cash Needed and Excess of Total Cash for M1 to M3 Q.3. Good is currently selling products worth $50k per month and expects the sales to increase to $75k per month in the following manner: MO $50 M1 $65 M2 $70 M3 $75 Revenue Ending Inventory $50 $51 $53 $50 Good sells -75% of its revenues for cash, while the balance 25% is sold on credit. The credit revenues are collected as cash in the following month. Cost of Goods Sold (COGS) is approximately 33% of revenues. Note that Purchases = Ending Inventory + Cogs - Beginning Inventory. Good makes 50% of purchases in cash, while the balance 50% is purchased on credit, which is paid as cash in the following month. The Ending Inventory balance is provided in the table above Company's wage bill is $5k per month, and is paid 50% cash in the same month and 50% in the cash in the following month. Similarly, Sales Commission is paid @ 5% of Sales per month is paid 50% cash in the same month and 50% in the cash in the following month. Miscellaneous cash expenses and rental expenses per month are $3k and $5k respectively. In M2, Good will have to purchase a truck for $150k for its supply chain operations. The beginning cash balance in M1 is $100k. Furthermore, Good must keep a minimum cash balance of $50k in its bank account every month in adherence to its policy. Good also has an interest free borrowing facility of $100k under the Make in India program from State Bank of India, to finance any short-term needs. Please prepare the following schedules: 3. Prepare the Wages and Commissions Schedule and calculate cash disbursements from M1 to M3 4. Prepare a partial Operating Schedule and calculate the Total Cash Needed and Excess of Total Cash for M1 to M3