The OBrien Vineyards makes and sells an awarding Pinot Noir. Each bottle of Pinot Noir sells for $24 dollars and has a unit variable cost of $14.

Here is what you will need to put together my Cash Budget

Maintains a 12% (1% per month) open line of credit for $75,000

Maintains a minimum cash balance of $20,000

Borrows on the first day of the month and repays loans last day of the next month (for example, if you were to borrow for July, which is really to meet August 1 beginning balance, you would repay end of Sept. You have use of the funds for 2 full months).

Pays a cash dividend of $10,000 in July

Purchased $38,000 of oak barrels in August and $48,400 of oak barrels in September both purchases of equipment paid for in cash.

Cash balance at July 1 is $22,500

I have summarized the following budget information for you

			July		August	September
	Cash collections		70,000		88,000	129,650
	Cash disbursements:
Materials		18,000		19,500			17,700
Direct labor		8,000		9,200			8,500
MOH		24,000		27,000			25,000
Selling and Admin		18,000		19,300			18,850

Prepare the Cash Budget (cash budget template is attached)

		July	August	Sept
	Begin cash
add:	Cash collections
	Total cash available
less:	Cash disbursements
	Materials
	Direct labor
	MOH
	Selling and Admin
	Equip purchase
	Dividend
	Total disbursements
	Excess (deficiency)
	Financing:
	Borrowing
	Repayments
	Interest
	Total financing
	Ending cash balance