STU Retailers Inc.

Scenario: Prepare Monthly Cash Budget

Data:

• Beginning Cash Balance: $80,000
• Expected Cash Receipts:
  • Sales Collections: $150,000
  • Loan Proceeds: $20,000

• Expected Cash Disbursements:
  • Purchases: $60,000
  • Salaries and Wages: $30,000
  • Rent and Utilities: $15,000

Requirements:

1. Prepare a Monthly Cash Budget for January.
2. Analyze the ending cash balance and funding requirements.
3. Discuss the importance of cash budgeting in managing liquidity.