Part A. Prepare a cash budget for Data Logic using the following assumptions.

Data Logic produces two products, widgets and gadgets.

May 2012 sales projection for widgets: $45,000

Monthly sales increase for widgets: 12%

May 2012 sales projection for gadgets $35,000

Monthly sales decrease for gadgets: -10%

Collections on total sales have been projected to be: 20% collected during the month of sale 60% collected one month after sale 20% collected two months after sale 20%

Expenses for May 2012 are projected to be as follows:

Rent 20,000 Monthly Increase 0%

Labor 25,000 Monthly Increase 2%

Taxes 10,000 Monthly Increase 1%

Depreciation 1,000 Monthly Increase 0%

Overhead 10,000 Monthly Increase 5%

Equipment 15,000 Monthly Increase 1%

Miscellaneous 3,000 Monthly increase 2%

All expenses are paid during the month incurred, except rent and labor. Rent and labor will be paid the following month.

Cash on hand on July 1, 2012 is projected to be $25,000.

A minimum cash balance of $25,000 should be maintained through the cash budget period.

Prepare a monthly cash budget for the last six months of 2012.

How much money will Data Logic need to borrow (or how much will it have available to invest) each month? Use the IF function to calculate the loan requirement and surplus for each month.

Part B. Change the following assumptions: Collections on sales have been projected to be: 35% collected during the month of sale 55% collected one month after sale 5% collected two months after sale 5% will be uncollectable How much money will Data Logic need to borrow (or how much will it have available to invest) each month? Use the IF function to calculate the loan requirement and surplus for each month.