wk5pme.xls
Capital Budgeting
| Precision Machines |
| Data: |
| | | November | December | January | February | March | April | May | June |
| Cost of borrowing | 10.00% |
| Minimum Cash Balance | $5,000 |
| Beginning Cash Balance | $7,500 |
| Revenues (Sales) | | $40,000 | $50,000 | $48,000 | $55,000 | $35,000 | $50,000 | $65,000 | $40,000 |
| Materials Purchases |
| Cash Collections | | November | December | January | February | March | April | May | June |
| First Month (30%) |
| Second Month (35%) |
| Third Month (35%) |
| Total Collections |
| Cash Disbursements |
| Material Purchases |
| Salaries | | | | $ 6,000.00 | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 | $ 60,000.00 | $ 6,000.00 |
| Wages | | | | $ 3,000.00 | $ 35,000.00 | $ 3,000.00 | $ 3,200.00 | $ 3,500.00 | $ 3,000.00 |
| Other Expenses |
| Capital Expenditure | | | | | | $ 25,000.00 |
| Dividends | | | | | | $ 1,000.00 | | | $ 1,000.00 |
| Interest |
| Total Disbursements |
| Cash flows |
| Net cash flows |
| Cumulative cash flows |
| Minimum Cash Balance |
| Cash Surplus or Deficit |
| Recommendations: |
Chevy52
