SHORT SUSPENSE
ksenli
notes_on_cash_budget_1.xlsxNOTES KASSIM
| TEAM NOTES | |||||||||||||||||||
| 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 sale = 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 | |||||||||
DEBRA WELLS USE
| Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Comments | |
| Collections | |||||||||||
| Sales | 100,000.00 | 275,000.00 | 320,000.00 | 450,000.00 | 700,000.00 | 700,000.00 | 825,000.00 | 500,000.00 | 115,000.00 | ||
| Collections | |||||||||||
| During month of sale | 25,000.00 | 68,750.00 | 80,000.00 | 112,500.00 | 175,000.00 | 175,000.00 | 206,250.00 | 125,000.00 | 28,750.00 | Formula = Monthly Sales * .45 | |
| During first month after sale | 55,000.00 | 151,250.00 | 176,000.00 | 247,500.00 | 385,000.00 | 385,000.00 | 453,750.00 | 275,000.00 | 63,250.00 | Formula = Monthly Sales * .55 | |
| During second month after sales | 20,000.00 | 55,000.00 | 64,000.00 | 90,000.00 | 140,000.00 | 140,000.00 | 165,000.00 | 100,000.00 | 23,000.00 | Formula = Monthly Sales * .2 | |
| Total Collections | 100,000.00 | 275,000.00 | 320,000.00 | 450,000.00 | 700,000.00 | 700,000.00 | 825,000.00 | 500,000.00 | 115,000.00 | Sum of all Collections, monthly | |
| Cash Gain or Loss for Month | |||||||||||
| Collections | 100,000.00 | 275,000.00 | 320,000.00 | 450,000.00 | 700,000.00 | 700,000.00 | 825,000.00 | 500,000.00 | 115,000.00 | ||
| Payments for purchases | 187,500.00 | 206,250.00 | 375,000.00 | 337,500.00 | 431,250.00 | 640,000.00 | 395,000.00 | 425,000.00 | |||
| Taxes | 55,000.00 | 55,000.00 | Amount explicitly provided | ||||||||
| Salaries | 35,000.00 | 35,000.00 | 35,000.00 | 35,000.00 | 35,000.00 | 35,000.00 | 35,000.00 | 35,000.00 | 35,000.00 | Amounts explicitly provided | |
| Lease Payments | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | Amounts explicitly provided | |
| Depreciation Charges | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | 15,000.00 | Amounts explicitly provided | |
| New Plant Investment | 95,000.00 | Amount explicitly provided | |||||||||
| Misc payments | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | 10,000.00 | Amounts explicitly provided | |
| Total Payments | 262,500.00 | 281,250.00 | 450,000.00 | 562,500.00 | 506,250.00 | 715,000.00 | 525,000.00 | 500,000.00 | 75,000.00 | Sum of all Payments, monthly | |
| Net Cash Gain/Loss | -162,500.00 | -6,250.00 | -130,000.00 | -112,500.00 | 193,750.00 | -15,000.00 | 300,000.00 | 0.00 | 40,000.00 | Total Collections - Total Payments | |
| Collections + Total Payments | 362,500.00 | 556,250.00 | 770,000.00 | 1,012,500.00 | 1,206,250.00 | 1,415,000.00 | 1,350,000.00 | 1,000,000.00 | 190,000.00 | ||
| Loan Requirement | |||||||||||
| Cash at start of month without borrowing | -162,500.00 | -6,250.00 | -130,000.00 | -112,500.00 | 193,750.00 | -15,000.00 | 300,000.00 | 0.00 | 40,000.00 | ||
| Target cash balance | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | 50,000.00 | ||
| Cash or Loan to maintain Target | 212,500.00 | 56,250.00 | 180,000.00 | 162,500.00 | 0.00 | 65,000.00 | 0.00 | 50,000.00 | 10,000.00 | Cash at Start of Month <50000 Amount to borrow = 50000-Cash at start of month else 0 (do not borrow) | |
| Cash at start + gain(loss) without borrowing = Cash at start + Gain(loss) without borrowing from prior month plus current month Net cash gain/loss = see formula in cell | |||||||||||
| PART 1 DRAFT WILL USE. | |||||||||||
