Angelina Dunkin, owner of Angelina?s Scents, is planning to request a line of credit from her bank.

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Question:

Angelina Dunkin, owner of Angelina?s Scents, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020:

Mo/yr	Sales
May-19	$180,000
Jun-19	$180,000
Jul-19	$360,000
Aug-19	$540,000
Sep-19	$720,000
Oct-19	$360,000
Nov-19	$360,000
Dec-19	$90,000
Jan-20	$180,000

Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus salaries:

Mo/yr	Costs of Labor and Raw Material
May-19	$90,000
Jun-19	$90,000
Jul-19	$126,000
Aug-19	$882,000
Sep-19	$306,000
Oct-19	$234,000
Nov-19	$162,000
Dec-19	$90,000

General and administrative salaries are approximately $27,000 a month. Lease payments under long-term leases are $9,000 a month. Miscellaneous expenses are $2,700 a month. Income tax payments of $63,000 are due in September and December. A progress payment of $180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $132,000, and a minimum cash balance of $90,000 should be maintained throughout the cash budget period.

In Excel, prepare a monthly cash budget for the last 6 months of 2019.

F GL MNO ?R $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 AB D25 Collections and purchases worksheet 26 Sales (gr 40 Lease payments 41 Miscellaneous expenses 42 Income tax payments 43 Design studio payment 44 Total payments 45 Net cash gai