• Prepare a Cash Flow Budget for the Too Bicycle Manufacturing Company. The owner will be withdrawing $ 4,500.00 per month for personal expenses. Plus, you get a $ 10,000 loan in January. It is expected to have a cash balance of 20,000 monthly

Projected sales

December - 70,000.00

January - 50,000.00

February - 50,000.00

March - 60,000.00

April - 50,000.00

80% of sales are on credit and will be charged; 20% at 30 days, 50% at 60 days and 30% at 90 days

Cost of what is sold is 20% of monthly sales and is paid in full after thirty days

Salaries represent 5% of sales

Profits represent a monthly expense of $ 3,000.00

The capital gain represents an expense of 1,500.00 dollars per year

Rent is equivalent to 6,000.00 dollars per year

Payment of tax of 5000.00 in April

Income received

December, January, February, March, April

Cash

30

60

90

Total

(Flujos de efectivos) Cash flow

JANUARY, FEBRUARY, MARCH, APRIL

Previous balance

Income

C.G.S

Cash available

Total expenditures

Tax

Cash flow