Develop a cash flow budget using the following
QUESTION
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
Borrowings
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
Borrowings/Repayments
Ending Cash Balance
Cumulative
Borrowings
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