the company must maintain a $100,000 cash balance at the end of each month.

THE CASH BUDGET WITH EXPLANATION Millennium Corporation Cash Budget Information - December 2017 - March 2018 Budget Items Total Sales Credit Sales December 825.000 770.000 January 730,000 690,000 February 840,000 780.000 March 920,000 855,000 290,000 27.000 12.000 290,000 27,000 14.000 Wages & Salaries Rentals Other Expenses Taxes Paid Dividends Equipment Purchase Cash Balance 250.000 27.000 10,000 105,000 40.000 declared 75,000 ordered 100,000 40.000 paid 75,000 paid Assumptions: 1. The company must maintain a $100,000 cash balance at the end of each month 2. 25% of credit sales are collected in the month of sale. 3. The credit sales balance is collected one month after the month of sale for each month 4. The company buys 60% of next month sales and these purchases are paid for in the following month S. The April's sale is expected to be $900,000. Required: Use the template below to show the company receipts and disbursement of cash as per the simulation above And answer the questions that follow. Millennium Corporation Cash Budget Worksheet for First Quarter, 2018 December January February March $825,000 Estimated Sales $730,000 690,000 $ $ 770,000 Estimated Credit Sales Estimated Receipts: Cash sales Collections of Accounts Receivable 25% of credit sales in the month 40,000 172,500 577,500 750,000 75% of credit sales one month after Total Accounts Receivable collections Estimated purchases Estimated payments of accounts payable $438,000 504,000 438,000 Cash Budget- First Quarter, 2018 December $825,000 January $730,000 February March Sales Projected cash balance beginning of month Receipts: $100,000 Cash sales Collection of accounts receivable 40,000 750,000 $890,000 Total cash available Disbursements: Payment of accounts payable Wages and salaries Rent Other expenses $438,000 250,000 $S $ 27,000 10,000 105,000 xes Dividends on common stock Purchase of new equipment $830,000 Total disbursements $ 60,000 Excess of available cash over disbursements Cash loans needed to maintain balance of $100,000 40,000 Projected cash balance, end of month Cumulative Net borrowings $100,000 $ 40,000 $ cussion Questions: 1. Acompany must synchronize their receipts of cash to synchronize with their disbursements. Correctly summarize your findings with respect to the synchronization of inflows and outflows of cash in the cash budget tabulated above. From your analysis would you be willing to grant a notes payable loan to this firm in April based on a 75% Factor? a. Yes b. No c. Rationalize you answer for a or b above 290,000 27,000 12,000 290,000 27,000 14,000 Wages & Salaries Rentals Other Expenses Taxes Paid Dividends Equipment Purchase Cash Balance 250,000 27,000 10,000 105,000 40.000 declared 75,000 ordered 100,000 40,000 paid 75,000 paid Assumptions: 1. The company must maintain a $100,000 cash balance at the end of each month 2. 25% of credit sales are collected in the month of sale. 3. The credit sales balance is collected one month after the month of sale for each month 4. The company buys 60% of next month sales and these purchases are paid for in the following month. 5. The April's sale is expected to be $900,000. Required: Ise the template below to show the company receipts and disbursement of cash as per the simulation above od answer the questions that follow. THE CASH BUDGET WITH EXPLANATION Millennium Corporation Cash Budget Information - December 2017 - March 2018 Budget Items Total Sales Credit Sales December 825.000 770.000 January 730,000 690,000 February 840,000 780.000 March 920,000 855,000 290,000 27.000 12.000 290,000 27,000 14.000 Wages & Salaries Rentals Other Expenses Taxes Paid Dividends Equipment Purchase Cash Balance 250.000 27.000 10,000 105,000 40.000 declared 75,000 ordered 100,000 40.000 paid 75,000 paid Assumptions: 1. The company must maintain a $100,000 cash balance at the end of each month 2. 25% of credit sales are collected in the month of sale. 3. The credit sales balance is collected one month after the month of sale for each month 4. The company buys 60% of next month sales and these purchases are paid for in the following month S. The April's sale is expected to be $900,000. Required: Use the template below to show the company receipts and disbursement of cash as per the simulation above And answer the questions that follow. Millennium Corporation Cash Budget Worksheet for First Quarter, 2018 December January February March $825,000 Estimated Sales $730,000 690,000 $ $ 770,000 Estimated Credit Sales Estimated Receipts: Cash sales Collections of Accounts Receivable 25% of credit sales in the month 40,000 172,500 577,500 750,000 75% of credit sales one month after Total Accounts Receivable collections Estimated purchases Estimated payments of accounts payable $438,000 504,000 438,000 Cash Budget- First Quarter, 2018 December $825,000 January $730,000 February March Sales Projected cash balance beginning of month Receipts: $100,000 Cash sales Collection of accounts receivable 40,000 750,000 $890,000 Total cash available Disbursements: Payment of accounts payable Wages and salaries Rent Other expenses $438,000 250,000 $S $ 27,000 10,000 105,000 xes Dividends on common stock Purchase of new equipment $830,000 Total disbursements $ 60,000 Excess of available cash over disbursements Cash loans needed to maintain balance of $100,000 40,000 Projected cash balance, end of month Cumulative Net borrowings $100,000 $ 40,000 $ cussion Questions: 1. Acompany must synchronize their receipts of cash to synchronize with their disbursements. Correctly summarize your findings with respect to the synchronization of inflows and outflows of cash in the cash budget tabulated above. From your analysis would you be willing to grant a notes payable loan to this firm in April based on a 75% Factor? a. Yes b. No c. Rationalize you answer for a or b above 290,000 27,000 12,000 290,000 27,000 14,000 Wages & Salaries Rentals Other Expenses Taxes Paid Dividends Equipment Purchase Cash Balance 250,000 27,000 10,000 105,000 40.000 declared 75,000 ordered 100,000 40,000 paid 75,000 paid Assumptions: 1. The company must maintain a $100,000 cash balance at the end of each month 2. 25% of credit sales are collected in the month of sale. 3. The credit sales balance is collected one month after the month of sale for each month 4. The company buys 60% of next month sales and these purchases are paid for in the following month. 5. The April's sale is expected to be $900,000. Required: Ise the template below to show the company receipts and disbursement of cash as per the simulation above od answer the questions that follow