Develop a cash flow budget using the
following information:
a. inventory turnover ratio = 12 e.
Sales half cash, half credit
b. cost of goods is 50% of sales. f. minimum cash balance =$100,000
c. accounts payable turnover ratio = 12. g.
Sept projected sales =$700,000
d. accounts receivable ratio = 12. h. Oct projected sales =$800,000
i. May Projected sales = $200,000
SITUATION
I
|
Item |
June |
July |
Aug |
|
Projected Sales |
160,000 |
192,000 |
320,000 |
|
Purchases |
|||
|
Pay Acc’t Payable |
|||
|
Pay Overhead |
45,000 |
45,000 |
45,000 |
|
Total Cash Outflow |
|||
|
Projected Sales |
160,000 |
192,000 |
320,000 |
|
Cash Sales |
|||
|
Collect Acc’t Rec |
30,000 |
||
|
Total Cash Inflow |
|||
|
Begin Cash Bal. |
200,000 |
||
|
Cash Inflow |
|||
|
Total Cash Avail. |
|||
|
Cash Outflow |
|||
|
Net Cash |
|||
|
Needed Borrowings/Repayments |
|||
|
Ending Cash Balance |
|||
|
Cumulative |
Develop
a cash flow budget using the following information:
a. inventory turnover ratio = 6 e. Sales half cash, half credit
b. cost of goods is 75% of sales. f. minimum cash balance =$100,000
c. accounts payable turnover ratio = 6. g.
Sept projected sales =$700,000
d. accounts receivable ratio = 6. h. Oct projected sales =$800,000
i. May projected sales = $200,000
SITUATION
II
|
Item |
June |
July |
Aug |
|
Projected Sales |
160,000 |
192,000 |
320,000 |
|
Purchases |
|||
|
Pay Acc’t Payable |
112,000 |
||
|
Pay Overhead |
45,000 |
45,000 |
45,000 |
|
Total Cash Outflow |
|||
|
Projected Sales |
160,000 |
192,000 |
320,000 |
|
Cash Sales |
|||
|
Collect Acc’t Rec |
30,000 |
||
|
Total Cash Inflow |
|||
|
Begin Cash Bal. |
200,000 |
||
|
Cash Inflow |
|||
|
Total Cash Avail. |
|||
|
Cash Outflow |
|||
|
Net Cash |
|||
|
Needed |
|||
|
Ending Cash Balance |
|||
|
Cumulative |
