| CASH BUDGET WORKSHEET ANSWERS | ||||||
| FEB | MAR | APR | MAY | JUN | JUL | |
| Cash Collections on Sales | ||||||
| Collections | $30,000 | $30,000 | $30,000 | $40,000 | $50,000 | $60,000 |
| Month of Sale (20%) | 6,000 | 6,000 | 6,000 | 8,000 | 10,000 | |
| 18,000 | 18,000 | 18,000 | 24,000 | |||
| 4,500 | 4,500 | 4,500 | ||||
| Total Cash Collections | 28,500 | 30,500 | 38,500 | |||
| Raw Materials Payment | ||||||
| Purchases | 22,500 | 30,000 | 37,500 | 45,000 | ||
| Payment | 22,500 | 30,000 | 37,500 | |||
| Cash Budget | ||||||
| Cash in from collection | 28,500 | 30,500 | 38,500 | |||
| Cash Out | ||||||
| a) Raw Material Purchases | 22,500 | 30,000 | 37,500 | |||
| b) Rent, Insurance, and Other | 1,000 | 1,000 | 1,000 | |||
| c) Wages | 3,000 | 4,000 | 5,000 | |||
| Total Cash Out | 26,500 | 35,000 | 43,500 | |||
| Cash gain (loss) | 2,000 | (4,500) | (5,000) | |||
| Beginning Balance without outside financing | 6,000 | 8,000 | 3,500 | |||
| Cumulative cash without outside financing | 8,000 | 3,500 | (1,500) | |||
| Required minimum cash | (5,000) | (5,000) | (5,000) | |||
| EXCESS CASH | $3,000 | ———- | ———- | |||
| OR | ||||||
| (CUMULATIVE LOAN NEEDS) | ———- | ($1,500) | ($6,500) | |||
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