Texas Rex sells t-shirts. Expected sales for each quarter is 1000, 1200, 1500, and 2000 t-shirts at $10.00 each. They anticipate no price change.

Texas Rex expects the following Cash Receipts in each quarter:

Q1 Q2 Q3 Q4

$10,600 $11,850 $14,775 $19,625

Texas Rex believes the amount of cash needed for payments on account for raw materials each quarter is:

Q1 Q2 Q3 Q4

$4,594 $5,039 $6,219 $6,819

The Cash Budget is critically important to the survival of businesses. It tells management how much cash is available and shortfalls of cash need to be anticipated and handled through expense reductions or financing. Assume that Texas Rexs beginning cash balance is $5200. The company requires a $1000 minimum cash balance for the end of each quarter. Money can be borrowed in increments of $1000. Interest is 12% per year. Borrowings take place at the beginning of a quarter and repayments occur at the end of a quarter. Budgeted depreciation is $540 per quarter for overhead and $150 per quarter for selling and administrative expenses. The company plans to purchase additional screen printing equipment at a cost of $6500 in the first quarter. Corporate income taxes are expected to be $3469 and will be paid at the end of the fourth quarter.

Texas Rex, Inc. Cash Budget For the year ending December 31, 2018

Q1 Q2 Q3 Q4 Total

Beginning Cash Balance

Cash Collections _______ _______ ________ _______ ________

Total Cash Available

Less Cash Payments for:

Raw Materials

Direct Labor

Overhead

S & Adm Expenses

Income Taxes Equipment _______ _______ ________ _______ ________

Total Disbursements

What is the formula sheet?