Case Study
Mfestoyo
case_study_excel_sheet.xlsCapital Budgeting
| Precision Machines | |||||||||
| Student Note: Fill in the light yellow cells | |||||||||
| Data: | |||||||||
| November | December | January | February | March | April | May | June | ||
| Annual Cost of borrowing | 10.00% | ||||||||
| Minimum Cash Balance | $5,000.00 | ||||||||
| Beginning Cash Balance | $7,500.00 | ||||||||
| Revenues (Sales) | $40,000.00 | $50,000.00 | $48,000.00 | $55,000.00 | $35,000.00 | $50,000.00 | $65,000.00 | $40,000.00 | |
| 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 | 6,000.00 | 6,000.00 | 6,000.00 | 6,000.00 | 6,000.00 | |||
| Wages | 3,000.00 | 3,500.00 | 3,000.00 | 3,200.00 | 3,500.00 | 3,000.00 | |||
| Other Expenses | |||||||||
| Capital Expenditure | 45,000.00 | ||||||||
| 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: |
