finance 6 part 2
For this assignment, you will construct a firm’s monthly cash budget. Download the Excel template below and complete the included problem.
Cash Budget (please see attachment)
Problem 1
Cash Budget
Sales for Blue Bill Corporation are projected as follows for the months of June through November:
June $200,000
July 200,000
August 200,000
September 300,000
October 500,000
November 200,000
Credit sales account for 70% of the monthy sales and are collected one month after the sale.
Other receipts for October are $50,000.
Variable disbursements are 60% of sales each month.
Fixed disbursements are $10,000 each month.
$80,000 should be included in August for taxes.
The company is obligated to make a $400,000 debt repayment in November.
Beginning cash in June is $50,000.
Desired ending cash each month is $10,000.
Complete the monthly cash budget for Blue Bill Corporation for June through November.
Blue Bill Corporation
Cash Budget
June July August September October November
Sales
Cash sales
Collections
Other Receipts
Total cash receipts
Variable disbursements
Fixed disbursements
Other disbursements
Total cash disbursements
Net change during the month
Beginning cash
Ending cash
Required cash
Excess cash to invest
Cash borrowed
