| ACME Company |
| Cash Budget July through December 2016 |
| May | June | July | August | September | October | November | December |
| Expected Gross Sales | $300.00 | $290.00 | $425.00 | $500.00 | $600.00 | $625.00 | $650.00 | $700.00 |
| During month | 11.64% | $34.92 | $33.76 | $49.47 | $58.20 | $69.84 | $72.75 | $75.66 | $81.48 |
| 1 month lag | 75% | 225.00 | 217.50 | 318.75 | 375.00 | 450.00 | 468.75 | 487.50 |
| 2 month lag | 13% | 39.00 | 37.70 | 55.25 | 65.00 | 78.00 | 81.25 |
| Total cash collections | $34.92 | $258.76 | $305.97 | $414.65 | $500.09 | $587.75 | $622.41 | $650.23 |
| Purchases of Raw Material |
| Expected Gross Purchases | 60% | $174.00 | $255.00 | $300.00 | $360.00 | $375.00 | $390.00 | $420.00 | $0.00 |
| Cash Payment 1 month lag | $174.00 | $255.00 | $300.00 | $360.00 | $375.00 | $390.00 | $420.00 |
| Disbursements: |
| Purchase of Raw Materials | $174.00 | $255.00 | $300.00 | $360.00 | $375.00 | $390.00 | $420.00 |
| Wages | 6% | $18.00 | $17.40 | $25.50 | $30.00 | $36.00 | $37.50 | $39.00 | $42.00 |
| Lease payments | 2% | $6.00 | $5.80 | $8.50 | $10.00 | $12.00 | $12.50 | $13.00 | $14.00 |
| Advertising Expense | 3% | $9.00 | $8.70 | $12.75 | $15.00 | $18.00 | $18.75 | $19.50 | $21.00 |
| R&D Expenditures | 12% | $60.00 | $72.00 | $75.00 |
| Prepaid Insurance | $24.00 |
| Other expenses | $15.00 | $20.00 | $25.00 | $30.00 | $35.00 | $40.00 |
| Taxes | $40.00 | $45.00 |
| Total Disbursement | $33.00 | $205.90 | $316.75 | $435.00 | $563.00 | $548.75 | $496.50 | $606.00 |
| Cash Budget: |
| Beginning Balance | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 |
| Collections | $305.97 | $414.65 | $500.09 | $587.75 | $622.41 | $650.23 |
| Disbursements | $316.75 | $435.00 | $563.00 | $548.75 | $496.50 | $606.00 |
| Net Cash Balance | $4.22 | ($5.35) | ($47.91) | $54.00 | $140.91 | $59.23 |
| Target Cash Balance | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 | $15.00 |
| (Deficit)/Surplus | ($10.78) | ($62.91) | $39.00 | $125.91 | $44.23 |
| Cumulative Borrowing | ($10.78) | ($31.13) | ($94.04) | ($55.04) | $70.87 | $115.10 |
| Surplus | ($20.35) |
| Cumulative Surplus | | | | | |
marea3
fin504.r.gitmanch04_student.xlsx
