Cash Outflows: Jan. Feb Mar. Apr. May June A. Estimated Sales 100 160 200 400 24
ID: 2562120 • Letter: C
Question
Cash Outflows:
Jan.
Feb
Mar.
Apr.
May
June
A. Estimated Sales
100
160
200
400
240
120
B. Purchases
Answer 1
Answer 2
Answer 3
Answer 4
Answer 5
Answer 6
C. Payment of Accounts Payable
70
Answer 7
Answer 8
Answer 9
Answer 10
Answer 11
D. Selling & Adm. Expenses
Answer 12
Answer 13
Answer 14
Answer 15
Answer 16
Answer 17
E. Total Cash Outflows
(C+D)
Answer 18
Answer 19
Answer 20
Answer 21
Answer 22
Answer 23
Cash Inflows
Jan.
Feb
Mar.
Apr.
May
June
F. Estimated Sales
100
160
200
400
240
120
G. Collection Sales Last Month
60
Answer 24
Answer 25
Answer 26
Answer 27
Answer 28
H. Collection Sales 2 Months Ago
50
60
Answer 29
Answer 30
Answer 31
Answer 32
I. Total Cash Inflows
(G+H)
Answer 33
Answer 34
Answer 35
Answer 36
Answer 37
Answer 38
Cash Flow Budget
Jan.
Feb
Mar.
Apr.
May
June
J. Beginning Cash Balance
Answer 39
Answer 40
Answer 41
Answer 42
Answer 43
Answer 44
K. Cash Inflow (I)
Answer 45
Answer 46
Answer 47
Answer 48
Answer 49
Answer 50
L. Total Cash Available
(J+K)
Answer 51
Answer 52
Answer 53
Answer 54
Answer 55
Answer 56
M. Cash Outflow (E)
Answer 57
Answer 58
Answer 59
Answer 60
Answer 61
Answer 62
N. Net Cash Position
(L-M)
Answer 63
Answer 64
Answer 65
Answer 66
Answer 67
Answer 68
O. Needed Borrowings
Answer 69
Answer 70
Answer 71
Answer 72
Answer 73
Answer 74
P. Loan Repayments
Answer 75
Answer 76
Answer 77
Answer 78
Answer 79
Answer 80
Q. Ending Cash Balance
Answer 81
Answer 82
Answer 83
Answer 84
Answer 85
Answer 86
R. Cumulative Borrowings
Answer 87
Answer 88
Answer 89
Answer 90
Answer 91
Answer 92
The Assumptions:
1. All sales are on credit.
2. Accounts Receivable Turnover Ratio = 8 = 45 days. This means that 1/2 of the customers pay one month after the sale and the other 1/2 pays two months after the sale.
3. Cost of Goods Sold is 70% of sales.
4. July sales are 100.
5. Accounts Payable Turnover Ratio = 12 = 30 days.
6. Monthly selling and administrative expenses are 40.
7. Beginning cash balance is 100.
8. Minimum cash balance is never less than 50.
9. Inventory Turnover Ratio = 12 = 30 days.
Cash Outflows:
Jan.
Feb
Mar.
Apr.
May
June
A. Estimated Sales
100
160
200
400
240
120
B. Purchases
Answer 1
Answer 2
Answer 3
Answer 4
Answer 5
Answer 6
C. Payment of Accounts Payable
70
Answer 7
Answer 8
Answer 9
Answer 10
Answer 11
D. Selling & Adm. Expenses
Answer 12
Answer 13
Answer 14
Answer 15
Answer 16
Answer 17
E. Total Cash Outflows
(C+D)
Answer 18
Answer 19
Answer 20
Answer 21
Answer 22
Answer 23
Cash Inflows
Jan.
Feb
Mar.
Apr.
May
June
F. Estimated Sales
100
160
200
400
240
120
G. Collection Sales Last Month
60
Answer 24
Answer 25
Answer 26
Answer 27
Answer 28
H. Collection Sales 2 Months Ago
50
60
Answer 29
Answer 30
Answer 31
Answer 32
I. Total Cash Inflows
(G+H)
Answer 33
Answer 34
Answer 35
Answer 36
Answer 37
Answer 38
Cash Flow Budget
Jan.
Feb
Mar.
Apr.
May
June
J. Beginning Cash Balance
Answer 39
Answer 40
Answer 41
Answer 42
Answer 43
Answer 44
K. Cash Inflow (I)
Answer 45
Answer 46
Answer 47
Answer 48
Answer 49
Answer 50
L. Total Cash Available
(J+K)
Answer 51
Answer 52
Answer 53
Answer 54
Answer 55
Answer 56
M. Cash Outflow (E)
Answer 57
Answer 58
Answer 59
Answer 60
Answer 61
Answer 62
N. Net Cash Position
(L-M)
Answer 63
Answer 64
Answer 65
Answer 66
Answer 67
Answer 68
O. Needed Borrowings
Answer 69
Answer 70
Answer 71
Answer 72
Answer 73
Answer 74
P. Loan Repayments
Answer 75
Answer 76
Answer 77
Answer 78
Answer 79
Answer 80
Q. Ending Cash Balance
Answer 81
Answer 82
Answer 83
Answer 84
Answer 85
Answer 86
R. Cumulative Borrowings
Answer 87
Answer 88
Answer 89
Answer 90
Answer 91
Answer 92
Explanation / Answer
Cash Outflows:
Jan.
Feb
Mar.
Apr.
May
June
A. Estimated Sales
100
160
200
400
240
120
B. Purchases
70
112
140
280
168
84
C. Payment of Accounts Payable
70
70
112
140
280
168
D. Selling & Adm. Expenses
40
40
40
40
40
40
E. Total Cash Outflows
110
110
152
184
320
208
(C+D)
Cash Inflows
Jan.
Feb
Mar.
Apr.
May
June
F. Estimated Sales
100
160
200
400
240
120
G. Collection Sales Last Month
60
50
80
100
200
120
H. Collection Sales 2 Months Ago
50
60
50
80
100
200
I. Total Cash Inflows
110
110
130
180
300
320
(G+H)
Cash Flow Budget
Jan.
Feb
Mar.
Apr.
May
June
J. Beginning Cash Balance
100
100
100
78
74
54
K. Cash Inflow (I)
110
110
130
180
300
320
L. Total Cash Available
210
210
230
258
374
374
(J+K)
M. Cash Outflow (E)
110
110
152
184
320
208
N. Net Cash Position
100
100
78
74
54
166
(L-M)
O. Needed Borrowings
P. Loan Repayments
Q. Ending Cash Balance
100
100
78
74
54
166
R. Cumulative Borrowings
Purchase is calculated from cost of goods sold
Cash Outflows:
Jan.
Feb
Mar.
Apr.
May
June
A. Estimated Sales
100
160
200
400
240
120
B. Purchases
70
112
140
280
168
84
C. Payment of Accounts Payable
70
70
112
140
280
168
D. Selling & Adm. Expenses
40
40
40
40
40
40
E. Total Cash Outflows
110
110
152
184
320
208
(C+D)
Cash Inflows
Jan.
Feb
Mar.
Apr.
May
June
F. Estimated Sales
100
160
200
400
240
120
G. Collection Sales Last Month
60
50
80
100
200
120
H. Collection Sales 2 Months Ago
50
60
50
80
100
200
I. Total Cash Inflows
110
110
130
180
300
320
(G+H)
Cash Flow Budget
Jan.
Feb
Mar.
Apr.
May
June
J. Beginning Cash Balance
100
100
100
78
74
54
K. Cash Inflow (I)
110
110
130
180
300
320
L. Total Cash Available
210
210
230
258
374
374
(J+K)
M. Cash Outflow (E)
110
110
152
184
320
208
N. Net Cash Position
100
100
78
74
54
166
(L-M)
O. Needed Borrowings
P. Loan Repayments
Q. Ending Cash Balance
100
100
78
74
54
166
R. Cumulative Borrowings
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