Module 6: Budgeting Assignment Use the following information to complete the cash flow budget for June through September. Refer to Chapter 14 in the text for an explanation of the ratios given below. Inventory Turnover Ratio 12 Cost of Goods Sold 50 % of Sales Accounts Payable Turnover Ratio 12 Accounts Receivable Ratio 12 Sales Half Cash, Half Credit Minimum Cash Balance October Projected Sales May Projected Sales Cumulative Borrowings at End of May 0.5 0.5 25,000 200,000 350,000 $ 20,000 July September Item August June 50,000 200,000 S Projected Sales 300,000 $ 450,000 S Cash Outflows Cost of Goods Sold Pay Accounts Payable Pay Overhead S 150,000 70,000 $ 70,000 $ 70,000 S 70,000 Total Cash Outflow Projected Sales 300,000 $ 450,000 $ 200,000 $ 50,000 Cash Inflows Cash Sales Collect Accounts Receivable Total Cash Inflow Beginning Cash Balance 25,000 Total Cash Inflow Total Cash Available Total Cash Outflow Net Cash Needed Borrowings/Repayments Ending Cash Balance Cumulative Borrowings