Using the template below, prepare a monthly cash budget for the last 5 months of 2014 for Helen's Fashion Designs. Only complete part a. as indicated below.
Input Data
Collections during month of sale				10%
Collections during month after sale				75%
Collections during second month after sale				15%
Lease payments (monthly)				$9,000
General and administrative salaries (monthly)				$27,000
Depreciation charges (monthly)				$36,000
Income tax payments (due in Sep & Dec)				$63,000
Miscellaneous expenses (monthly)				$2,700
New design studio payment (due in Oct)				$180,000
Cash on hand July 1				$132,000
Minimum cash balance				$90,000
Sales adjustment factor				0%
Sales			$180,000	$180,000	$360,000	$540,000	$720,000	$360,000	$360,000	$90,000	$180,000
Labor & raw material cost incurred (payment made one month later)			$90,000	$90,000	$126,000	$882,000	$306,000	$234,000	$162,000	$90,000
a. Prepare a monthly cash budget for the last 6 months of 2014.
The Cash Budget
			May	June	July	August	September	October	November	December	January
Sales (gross)			$180,000	$180,000	$360,000						$180,000
(1) Collections
During month of sale					36,000
During 1st month after sale					135,000
During 2nd month after sale					27,000
Total collections					$198,000
(2) Purchases and payments for labor and raw materials
Purchase of labor and raw materials			$90,000	$90,000	$126,000
Payments for labor and raw materials					$90,000
(3) Cash gain or loss for month
Total collections					$198,000
Payments for labor and raw materials					90,000
General and administrative salaries					27,000
Lease payments					9,000
Miscellaneous expenses					2,700
Income tax payments
Design studio payment
Total payments					$128,700
Net cash gain (loss) during month: Total collections - Total payments					$69,300
(4) Cash surplus or loan requirement
Check figures for cash from operations at start of month.						$201,300	$387,600	($65,100)	$67,200	$208,500
Cash from operations at start of month					$132,000
Cumulative cash (Row 50 plus Row 55)					$201,300
Target cash balance					$90,000
Cumulative surplus cash or loans
outstanding to maintain $90,000 target cash balance					$111,300