Small Business Finance - BOSG 1341- Homework -Assignme 2. Your projected sales for next year are as follows: January, $20,000; February, $19,000; and March, $17,000. Based on last year's data, cash sales are 30 percent of total sales for each month. Of the accounts receivable, 60 percent are collected in the month after the sale, and 40 percent are collected in the second month following the sale. Sales for November and December of the current year are $23,000 and $25,000, respectively. You have the following estimated payments: Monthly Accounts Payable are 50% of previous months sales You have monthly operating costs of $4,800, in February you expect them to rise to $5,200 per month You are preparing your pro forma cash budget for the next quarter. You have the numbers you need from the past November and December. Using the format below, what is your monthly cash budget for January, February, and March? ("Don't worry about the borrowing and repayment section). To get you started I have filled in some of the data for you. (50 points) Pro Forma Cash Budget Monthly Cash Receipts November December January February March Sales 23,000 25,000 Current Month Collection at 30% of sales 6,900 7,500 Outstanding Current Month Accounts Receivable 16,100 17,500 60% of AR Collected month following sale 9,660 40% of AR collected 24 month following sale 5,040 - Total Receipts 22,200 (Use common sense here! Add current month cash collections the 60% AR for the month + 40% AR for the month) Monthly Cash Payments Accounts Payable 11,500 Operating Expenses 4,800 Total Payments 16,300 Monthly Cash Budget Total Receipts 22,200 Total Payments 16,300 Net Cash Flow 5,900 Note: Shaded rows-Sales and Outstanding Current Month do not represent cash flow If you keep a minimum cash balance of $5,000 will your company have any borrowing requirements for any month during this three-month period? a