Using a spreadsheet, prepare a cash budget for New Tech for the next year (January through December) based on the following information.

October November December

Sales revenue (previous year) 325.0 325.0 325.0

Purchases 59.2

PAYMENT SCHEDULE

Cash sales 5 10% 30-day payment = 70%

60-day payment = 20%

PURCHASE SCHEDULE

Paid in first month = 40%

Paid during second 60 days = 60%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales Revenue 325 300 275 325 350 375 400 375 350 300 275 250

Purchases 59.0 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2

Disbursements

Freight in 4.2 4.0 5.1 5.4 7.3 6.5 6.7 6.6 6.1 7.0 5.8 5.7

Labor 40.0 39.0 38.0 42.0 38.4 44.3 42.5 41.0 38.0 39.0 39.5 38.0

Utilities, 2.5 2.2 2.4 2.5 2.5 2.8 2.7 2.5 2.6 2.6 2.6 2.4

Insurance, etc.

Salaries selling 60.0 62.0 65.8 62.8 62.7 67.9 71.6 62.8 64.9 66.9 68.0 65.0

Commissions 5.9 5.0 5.8 6.8 6.9 7.4 8.0 7.8 6.5 6.8 6.4 6.4

Travel 7.0 7.1 6.9 6.8 7.6 7.8 8.4 7.5 7.7 7.7 7.9 7.4

Advertising 6.0 6.5 7.0 9.0 8.5 8.7 8.3 8.1 7.0 7.2 6.0 7.5

Other charges 5.0 6.0 3.0 40.0 50.0 21.5 18.3 18.7 18.9 16.0 8.5 14.0

Selling

Salaries 35.0 35.0 34.0 33.0 36.0 36.0 38.0 39.0 35.0 33.0 32.0 34.0

administration

Leasing 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8

Research n 8.3 10.3 15.6 7.5 8.3 7.7 7.9 6.2 6.7 6.9 6.3 8..3

development

Taxes 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3

Purchase of assets 40.0 45.0 33.0 350.0 500 16.8 23.8 23.0 18.0 20.0 20.0 10.0