Question: Gamma Construction Ltd. Scenario: Prepare a Cash Budget Data: Beginning Cash Balance: $50,000 Expected Cash Receipts: Sales Collections: $100,000 Loan Proceeds: $20,000 Expected Cash Disbursements:

Gamma Construction Ltd.

Scenario: Prepare a Cash Budget

Data:

  • Beginning Cash Balance: $50,000
  • Expected Cash Receipts:
    • Sales Collections: $100,000
    • Loan Proceeds: $20,000
  • Expected Cash Disbursements:
    • Materials Purchases: $30,000
    • Salaries and Wages: $40,000

Requirements:

  1. Prepare a monthly cash budget for January.
  2. Analyze the ending cash balance for January.
  3. Discuss the importance of cash budgeting in managing liquidity.

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