Requirements:

1. Use this information to prepare a cash budget for the months of May and June, using the template provided in Doc Sharing.

2. What are the three sections of a cash budget, and what is included in each section?

3. Why is a cash budget so vital to a company?

4. What are the five basic principles of cash management that a company can follow in order to improve its chances of having adequate cash?

Please use the template that I provided to assist me with these problem.

CASE STUDY 3%u2014Cash Budget Template
SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS
Credit Sales			May	June
April
May
June
Total Cash Collections			-	-
SCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY
Inventory purchases			May	June
April
May
June
Total Payments for Inventory Purchases			-	-
	LBJ Company
	Cash Budget
	For the Two Months of May and June
			May	June
Cash balance
Add: Receipts
Collections from customers			0	0
Sale of plant assets
Sale of new common stock
Cash sales
Total receipts			0	0
Total Available Cash			0	0
Less: Disbursements
Purchases of inventory			0	0
Operating expenses
Selling and administrative expenses
Equipment purchase
Dividends
Total disbursements			-	-
Excess (deficiency of available cash over disbursements)			-	-
Financing
Borrowings
Repayments
Ending cash balance			$0	-
Please answer the three qualitative questions on the next tab called Qualitative Questions.