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Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and
Payables of 12/31/x1 will have a cash impact in 20x2.)
1. 18.00% of sales for the year are made in November and December. Since our customers have 60 day terms
those funds will be collected be collected in January and February.
2. 86.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.
3. All other manufacturing and operating costs are paid for when incurred.
4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.
5. Minimum Cash Balance needed for 20x2, $185,000 .
	Beginning Cash Balance								$ 34,710.000
	Cash Inflows:
		Sales Collections:
			Account Receivable (Sales last year not collected)						$ 67,500.00
			Sales made and collected in 20x2						$ 1,086,500.00
			Cash Available						$ 1,188,710.00
	Cash Outflows:
		Purchases
			Accounts Payable (Purchases last year)						$ 54,000.000
			Purchases made and paid for in 20x2						$ 354,337.20
		Other Manufacturing Costs
			Direct Labor						$ 51,240.000
			Total Manufacturing Overhead						$ 341,484.000
		Selling and Administrative							$ 207,250.000
		Less: Depreciation							$ 21,900.00
			Total Cash Outflows						$ 986,411.20
	Budgeted Cash Balance before financing								$ 202,298.80
	Needed Minimum Balance								$ 185,000.000
	Amount to be borrowed (if any)								$ -
	Budgeted Cash Balance								$ 202,298.80
	The number I have in bold are incorrect. Please assist. Thank you!

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