What is the cash budget for Optimistic?

ENTREPRENEURSHIP IN ACTION Rowena's Cash Budget Last night, Rowena attended a workshop on managing cash flow sponsored by the local chamber of commerce Rowena Rowdy had been in business for slightly more Much of what the presenter said hit home with Rowena than 2 years, but she had never taken the time to develop This fellow must have taken a look at my company's fi- a cash budget for her company. Based on a series of renancial records before he came here tonight," she said to cent events, however, she knew the time had come to a friend during a break in the presentation. On her way start paying more attention to her company's cash flow. home from the workshop, Rowena decided that she would The business was growing fast, with sales more than take the presenter's advice and develop a cash budget for tripling from the previous year, and profits were rising. her business. After all, she was planning to approach her However, Rowena often found it difficult to pay all of the banker about a loan for her company, and she knew that company's bills on time. She didn't know why exactly, but creating a cash budget would be an essential part of her she knew that the company's fast growth was requiring loan request. She started digging for the necessary infor- her to incur higher levels of expenses. mation, and this is what she came up with $10,685 63% on credit and 37% in cash 61 % in 1 to 30 days; 27% in 31 to 60 days; 8% in 61 to 90 days; 4% never collected (bad debts). Current cash balance Sales pattern Collections of credit sales