Using a spreadsheet, prepare a cash budget for New Tech for the next year (January through December)
Question:
Using a spreadsheet, prepare a cash budget for New Tech for the next year (January through December) based on the following information.
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...
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New Tech Oct Nov Dec Sales (Prior Year) 325 325 325 Purchases 59.2 Payment Schedule Cash Sales 10% 30 day payment 70% 60 day payment 20% Purchase Schedule Paid first 30 days 40% Paid second 60 days 60% Jan Feb Мы May Jun Jul Aug Sep Oct Nov Dec Apr Sales 325 300 275 325 350 375 400 375 350 300 275 250 Purchases 59 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 Disbursements Freight in 4.2 5.1 5.4 7.3 6.5 6.7 6.6 6.1 5.8 5.7 Labor 40 39 38 42 38.4 44.3 42.5 41 38 39 39.5 38 Utilities 2.5 2.2 2.4 2.5 2.5 2.8 2.7 2.5 2.6 2.6 2.6 2.4 Salaries (Sales) 60 62 65.8 62.8 62.7 67.9 71.6 62.8 64.9 66.9 68 65 Commissions 5.9 5.8 6.8 6.9 7.4 7.8 6.5 6.8 6.4 6.4 Travel 7.1 6.9 6.8 7.6 7.8 8.4 7.5 7.7 7.7 7.9 7.4 Advertising 6.5 8.5 8.7 8.3 S.1 7.2 7.5 Other charges 40 50 21.5 18.3 18.7 18.9 16 8.5 14 Selling Salaries (Admin) 35 35 34 33 36 36 38 39 35 33 32 34 Leasing 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 3.8 5.8 3.8
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Need for external financing When January February March April May June July August September October November December Total 10 decrease in sales 4094 1118 784 37226 50557 2279 3639 6721 6503 3880 105...View the full answer
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