Will Eunice Cash Budget for the first quarter ended on March, 31 Particulars January Febuary March Beginning Cash Balance $5,000 $7,800 $46,638 Cash Sales $48,000 $105,600 $60,800 Cash Collected from account receivable $30,000 $12,000 $26,400 Total cash available $83,000 $125,400 $133,838 Cash Payments: Cost of sales (Cash purchases) $12,600 $27,720 $20,160 Cost of sales (Account payable payment) $17,000 $8,400 $18,480 Operating expenses (cash paid) $19,600 $25,200 $22,400 Operating expenses (account payable payment) $21,000 $8,400 $10,800 Rent paid $4,000 $4,000 $4,000 Insurance Premium paid $6,000 $0 $0 Interest on loan paid $0 $42 $0 Total cash payments $80,200 $73,762 $75,840 preliminery cash balance $2,800 $51,638 $57,998 Additional loan (Loan Repayment) $5,000 -$5,000 $0 Ending cash balance $7,800 $46,638 $57,998 Loan Balance Loan Balance beginning of month $0 $5,000 $0 Additional loan (Loan Repayment) $5,000 -$5,000 $0 Loan Balance End of month $5,000 $0 $0

Will Eunice have to borrow any shortterm loans to cover cash shortfalls in the first quarter of the year? If so, how much money will she have to borrow, and what do you think may have caused this? If Eunice has to borrow a shortterm loan to cover cash shortfalls in the first quarter of the year, will she be able to pay it back in a timely manner? If so, when? By the end of the quarter, will Eunice have a surplus or deficit of cash? If she has a surplus, what should she do with the extra money? Overall, how do you think Eunice is doing at planning her cash receipts and cash disbursements in order to keep enough cash on hand to pay her bills?