How to do this cash budget 8. Cash Budget Assume actual cash receipts and disbur

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How to do this cash budget

8. Cash Budget Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and Pavables of 12/31/16 will have a cash impact in 2017). 1· 2 3. 18.00% of sales forthe year are made in November and December. Since our customers have 60 day terms those funds will be collected in January and February 83.00% of material purchases will be paid during the year, the remaining portion will be paid in January or February All other manufacturing and operating costs are paid for when incurred. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. Minimum Cash Balance needed for 2017, $140,000. 4. 5. Betty's Design Projected Cash Budget For the Year Ending December 31, 2017 Round Dollars to two places, Ref # Beginning Cash Balance Cash Inflows Sales Collections Account Receivable (Sales last year notcollected) Sales made and collected in 2017 in ro 0,20 S 10.02 10.03 10.04 Cash Available Cash Outflows $54002 Purchases made and paid for in 2017 10.05 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation 10.06 10.07 Total Cash Outflows Budgeted Cash Balance before financing eeded Minimum Balance mount to be borrowed (if any) udgeted Cash Balance sio, 002.00 10.09 10.10 Pape 10 of 16

Explanation / Answer

cash budget for 2017 Particulars Amount Begning cash Balance 34710 cash inflows sales collections accounts receivables 67500 sales made n collected 922500 922500 cash available 1024710 cash outflow purchases accounts payables 54000 purchases made for 2017 600300 600297.5 other manufacturing cost 23000 direct labor 78750 total manufacturing cost 145250 selling and administerATIVE 43500 87150 LESS: DEPRECIATION 87150 Total cash outflow 886700 budgeted cash flow 138010 needed minimum balance 140000 amount to be borrowed 1990 budgeted cash balance notes 1.since 18 perecnt is for net 60 days, so we minus that amount from the gross sales 2. purchases for 83 percent was to be paid and remaining will be covered up next year 3. depreciation is calculated by totalling the total expenses for 14250 and the same is calculated at .6 percent 4. After reaching the actual amount we need a minimum cash balance for 140,000 for which we need to borrow a sum of 1990

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