REVIEW

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Sheet1

Cyrus Brown Manufacturing (CBM) MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMEBER
cash collection from sales
SALES ESTIMATE March sales 25000 55000 20000
March $100,000 april sales 68750 151250 55000
April $275,000 May sales 80000 176000 64000
May $320,000 June sales 112500 247500 90000
June $450,000 July sales 175000 385000 140000
July $700,000 August sales 175000 385000 140000
August $700,000 September sales 206250 453750 165000
September $825,000 October sales 125000 275000
October $500,000 November sales 28750
November $115,000 total cash collections from sales 25000 123750 251250 343500 486500 650000 731250 718750 468750
payment collection within the month of sal = 25%
payment collection the month following sales = 55% WELLS CYRUS BROWN MANUFACTURING
payment collection the second month following sales = 20% CASH BUDGET
FOR THE 9 MONTHS ENDING 30TH NOVEMBER
direct manufacturing cost paid for one month later MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMEBER
estimated direct manufacturing costs opening cash balance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 122,500
March $187,500 add collections from customers 25,000 123,750 251,250 343,500 486,500 650,000 731,250 718,750 468,750
April $206,250 total cash available 75,000 173,750 301,250 393,500 536,500 700,000 781,250 768,750 591,250
May $375,000
June $337,500 less cash disbursement
July $431,250 manufacturing cost 187,500 206,250 375,000 337,500 431,250 640,000 395,000 425,000
August $640,000 administrative salaries 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000
September $395,000 lease payment 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
October $425,000 plant purchased 95,000
income tax expense 55,000 55,000
administrative salaries = $35,000 per month miscellaneous 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
lease payments per month = $15,000 total disbursement 60000 247500 266250 585000 397500 491250 755000 455000 485000
plant purchased in June = $95,000 excess (deficiency) of receipts over disbursement
income tax expense payable in both June and September = $55,000 15,000 - 73,750 35,000 - 191,500 139,000 208,750 26,250 313,750 106,250
miscellaneous cost = $10,000 per month Borrowings 35,000 123,750 15,000 241,500 23,750
opening cash balance in 1st March = $50,000 Repayment 89,000 158,750 191,250
minimum cash balance = $50,000 at any time closing balance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 122,500 106,250

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