You have recently been hired by Piepkorn Manufacturing to work in its newly established treasury department. Piepkorn Manufacturing is a small company that produces cardboard boxes in a variety of sizes. Gary Piepkorn, the owner of the company, works primarily in the sales and production areas. Currently, the company puts all receivables in one shoe box and all payables in another. Because of the disorganized system, the finance area needs work, and that's what you've been brought in to do.

1. Use the numbers given to complete the cash budget and short-term financial plan.
2. Rework the cash budget and short-term financial plan assuming Piepkorn changes to a target balance of $80,000.

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02 03 04 Q1 Gross sales $863,500 $918,500 $996,000 $924,000 PIEPKORN MANUFACTURING Cash Budget 01 2 Q3 Beginning cash balance Net cash inflow Ending cash balance Minimum cash balance Cumulative surplus (deficit) PIEPKORN MANUFACTURING Short-Term Financial Plan Q1 Q2 3 04 Target cash balance Net cash inflow New short-term investments Income from short-term investments Short-term investments sold New short-term borrowing Interest on short-term borrowing Short-term borrowing repaid Ending cash balance Minimum cash balance Cumulative surplus (deficit) Beginning short-term investments Ending short-term investments Beginning short-term debt Ending short-term debt