Philip and Brenda Carnevale were doing something that they had never done before, creating a cash budget. This process was something their banker had asked them to do before coming in to talk to her about their current line of credit with the bank.

Carnevale Estimates for Next Year 6% 5% 4% 8% 7% 7% 7% 9% 10% 15% 14% 8% 100.0% January February March April May June July August September October November December TOTAL Sales $271,062 $225,885 $180,708 $361,416 $316,239 $316,239 $316,239 $406,593 $451,770 $677,655 $632,478 $361,416 $4,517,700 Monthly Purchases $165,000 $195,000 $185,000 $170,000 $115,000 $140,000 $148,000 $145,000 $365,000 $310,000 $254,000 $205,000 Utilities $3,900 $3,900 $4,000 $4,200 $4,200 $4,200 $4.400 $4.400 $4,300 $4,200 $4,000 $4,100 $49.800 Marketing $23,000 $27,000 $25.000 $25,000 $29,000 $32,000 $33,000 $33,000 $29,000 $34,000 $36,000 $39,000 $365,000 Insurance $8.300 $8.300 $8.300 $8,300 $8.300 $8,300 $8.300 $8,300 $8.300 $8.300 $8.300 $8.300 $99.600 Salaries and Benefits $24,000 $25,500 $21,000 $28,000 $32,000 $37,000 $38.000 $38.000 $39,000 $36,000 $34,000 $40,000 $392,500 E-commerce $4,000 $5,000 $4,500 $4.500 $4.500 $5.000 $5.000 $5.000 $4.500 $5.000 $7.000 $7,500 $61.500 Repairs and Maintenance $6,000 $6,000 $6.000 $6,000 $6,000 $6,000 $6.000 $6.000 $6,000 $6,000 $6,000 $6,000 $72,000 Travel $4,100 $5,000 $3,000 $7,000 $6,000 $2,500 $2,500 $3,000 $2,500 $5,500 $6,500 $5,000 $52,600 Supplies $4.000 $4.000 $4.000 $4,000 $4.000 $4,000 $4.000 $4.000 $4,000 $4.000 $4,000 $4,000 $48.000 Interest $18,500 $18,500 $18.500 $18,500 $18,500 $18,500 $18.500 $18.500 $18,500 $18,500 $18,500 $18,500 $222,000 Loan Payments $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $22,750 $273,000 Line of Credit Payment $15,125 $14,687 $14,250 $13,813 $13,375 $12,500 $83,750 Other $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000