Prepare a monthly cash budget for the remainder of the fiscal year (through September). A template is attached. Some additional information that may be helpful in preparing the cash budget:

-When a customer has provided a prepayment on part of an order, the prepayment will be applied against shipments on that order until the prepayment is used up. This should be shown in the cash budget as a deduction from sales.

-The amount of delay between the month of shipment and the cash receipt is determined by the payment terms offered by Jackson to its customers. 100% in the First Month After Sale indicates cash for all sales on account will be received by Jackson 30 days after the sale. The delay between Jackson's purchase and payment for materials is determined by the payment terms negotiated by Jackson with its suppliers. This lag must be accounted for when you enter the payments. Therefore, the amount paid for raw materials purchases from suppliers in June will come from the accounts payable balance on the May financial statements, and the amounts for subsequent months will come from the projection in the case. When the case mentions that prepaid expenses and other accrued expenses will remain the same as the end of May, they mean that operating expenses will be level during the case time period.

-Jackson's quarterly income tax payments of $375,000 each are due in June and September.

-Jackson does not have a minimum cash balance amount.

Note that entre must be made with their appropriate cash flow in Collections from receivables, interest income, loan proceeds f Operating expenses Capital expenditures, The Interest paid, loan principal paid, dividend paid Enter the percentage of sales received in the month of the sale and each month thereafter in cells D10 through 13. For example, for 30 day termsenter 100 x incell 11 anderes in the other cells Macash discount exists, it can be entered in cell F10. Otherwise enter zero. March April May Jun July Aug Sep Oct Cash Budget Forecast Month 3 Month-2 Month-1 Month 1 Month 2 Month 3 Month 4 Month 5 Sales XOOXXX Prepayments applied (negative sign) Sales on account 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cash receipts in month of sale 0.ON Cash Disc 0.0% 0.0 0.0 0.0 First month after sale 100.0% 0.0 0.0 0.0 0.0 0.0 Second month after sale 0.0 0.0 0.0 0.0 Third month after sale 0.0 0.0 0.0 0.0 0.0 Interest Income 0.0 0.0 0.0 0.0 0.0 Loan Proceeds + Cash Receipts 0.0 0.0 0.0 0.0 0.0 Enter labels for expenses here. - Cash Dabursements Net Cash Flow 0.0 0.0 0.0 0.0 00 00 00 Beginning Cash Balance Ending Cash Balance - Minimum Cash (Additional Borrowing Needed) or Surplus 00 Based on case Exh 32 anunted Wrest rate on the beginning monthly balances 4 V fx 09 x 1 Jackson Automotive Systems 2 Sources and Uses of Funds, August to May 2013 4 Sources of Funds 5 Increase in bank debt 6 Decrease in cash Decrease in accounts receivable 8 Increase in retained earnings Decrease in net fixed assets Increase in customer advances 11 Increase in accounts payable 12 Decrease in prepaid expenses 13 Increase in taxes payable 14 Total Sources of Funds 9 10 5,000 3,356 2,049 1,632 1,080 1,049 992 188 21 15,367 15 16 Uses of Funds 17 Stock repurchase 18 Inventories 19 Decrease in accruals 20 Total Uses of Funds 10,000 5,009 358 15,367 22 Note that entre must be made with their appropriate cash flow in Collections from receivables, interest income, loan proceeds f Operating expenses Capital expenditures, The Interest paid, loan principal paid, dividend paid Enter the percentage of sales received in the month of the sale and each month thereafter in cells D10 through 13. For example, for 30 day termsenter 100 x incell 11 anderes in the other cells Macash discount exists, it can be entered in cell F10. Otherwise enter zero. March April May Jun July Aug Sep Oct Cash Budget Forecast Month 3 Month-2 Month-1 Month 1 Month 2 Month 3 Month 4 Month 5 Sales XOOXXX Prepayments applied (negative sign) Sales on account 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cash receipts in month of sale 0.ON Cash Disc 0.0% 0.0 0.0 0.0 First month after sale 100.0% 0.0 0.0 0.0 0.0 0.0 Second month after sale 0.0 0.0 0.0 0.0 Third month after sale 0.0 0.0 0.0 0.0 0.0 Interest Income 0.0 0.0 0.0 0.0 0.0 Loan Proceeds + Cash Receipts 0.0 0.0 0.0 0.0 0.0 Enter labels for expenses here. - Cash Dabursements Net Cash Flow 0.0 0.0 0.0 0.0 00 00 00 Beginning Cash Balance Ending Cash Balance - Minimum Cash (Additional Borrowing Needed) or Surplus 00 Based on case Exh 32 anunted Wrest rate on the beginning monthly balances 4 V fx 09 x 1 Jackson Automotive Systems 2 Sources and Uses of Funds, August to May 2013 4 Sources of Funds 5 Increase in bank debt 6 Decrease in cash Decrease in accounts receivable 8 Increase in retained earnings Decrease in net fixed assets Increase in customer advances 11 Increase in accounts payable 12 Decrease in prepaid expenses 13 Increase in taxes payable 14 Total Sources of Funds 9 10 5,000 3,356 2,049 1,632 1,080 1,049 992 188 21 15,367 15 16 Uses of Funds 17 Stock repurchase 18 Inventories 19 Decrease in accruals 20 Total Uses of Funds 10,000 5,009 358 15,367 22