| Precision Machines - Cash Budget |
| Data: | | | | | | | | | | | | Instructions: |
| Annual Cost of borrowing | 10.00% |
| Minimum Cash Balance | $5,000 | | | | | | | | | | | Fill in all the YELLOW cells |
| Beginning Cash Balance | $7,500 | | | | | | | | | | | Sales Revenue is collected: |
| | | November | December | January | February | March | April | May | June | | | | 30% in the month of the sale; |
| Revenues (Sales) | | $40,000 | $50,000 | $48,000 | $55,000 | $35,000 | $50,000 | $65,000 | $40,000 | | | | 35% in the month after the sale; |
| | | | | | | | | | | | | | 35% in the third month |
| | | | | | | | | | | | | Raw Material Purchases equal 50% of the previous month's revenue |
| Cash Collections | | November | December | January | February | March | April | May | June | | | Final Month-End Cash Balance must always be minimum $5,000 |
| First Month (30%) | 30% | $ 12,000 | $ 15,000 | $14,400 | $16,500 | $10,500 | $15,000 | $19,500 | $12,000 | | | You may need to borrow to maintain minimum cash balance |
| Second Month (35%) | 35% | | $ 14,000 | $17,500 | $16,800 | $19,250 | $12,250 | $17,500 | $22,750 | | | Interest is paid in any month if money was owed at the end of the previous month |
| Third Month (35%) | 35% | | | $14,000 | $17,500 | $16,800 | $19,250 | $12,250 | $17,500 |
| Total Collections | | $ 12,000 | $ 29,000 | $45,900 | $50,800 | $46,550 | $46,500 | $49,250 | $52,250 |
| Cash Disbursements |
| Raw Material Purchases | 50% | 0.00 | $20,000 | $25,000 | $24,000 | $27,500 | $17,500 | $25,000 | $32,500 |
| Salaries | | 0.00 | | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Wages | | 0.00 | | $3,000 | $3,500 | $3,000 | $3,200 | $3,500 | $3,000 |
| Other Expenses | | 0.00 |
| Capital Expenditure | | 0.00 | | | | $45,000 |
| Dividends | | 0.00 | | | | $1,000 | | | $1,000 |
| Interest | | 0.00 | | | | | $567 |
| repayment of amount borrowed | | 0% | | | | | $4,250 |
| Total Disbursements | | 0.00 | 20,000.00 | 34,000.00 | 33,500.00 | 82,500.00 | 31,517.04 | 34,500.00 | 42,500.00 |
| Monthly Net Operating Cash Flows | | $ 12,000.00 | $ 9,000.00 | $ 11,900.00 | $17,300.00 | $ (35,950.00) | $ 14,982.96 | $ 14,750.00 | $ 9,750.00 |
| | 0 |
| preliminary month-end cash balance | | | $ 7,500.00 | $ 19,400.00 | $ 36,700.00 | $ 750.00 | $ 15,732.96 | $ 30,482.96 | $ 40,232.96 |
| amount borrowed to maintain $5,000 minimum balance | | | | | | $4,250 |
| Final Month-End Cash Balance | | | $7,500 | $ 19,400.00 | $ 36,700.00 | $ 5,000.00 | $ 15,732.96 | $ 30,482.96 | $ 40,232.96 |
| month-end amount owed | | | $0 | | | $4,817 |
maggiemak1
precision_machines_cash_budgetxls.xls
