Cash Budget Assume the following information for Wolud Maintains a 16% open line of credit...
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Cash Budget Assume the following information for Wolud Maintains a 16% open line of credit for $75,000 Maintains a minimum cash balance of $30,000 Borrows on the first day of the month and repays loans on the last day of the month Pays a cash dividend of $49,000 in July Purchases $143,700 of equipment in August and $48,300 in Sept (both purchases paid in cash) Has an July 1st cash balance of $40,000 complete the cash forecast for the quarter They expect to spend and collect the following: Ju August September Collections Supplies Labor Overhead SG&A 170,000.00 410,000.00 360,000.00 (40,000.00) (72,300.00) (72,700.00) (13,000.00) (23,000.00) (14,500.00) 56,000.00 76,000.00) (59,000.00 (70,000.00) (85,000.00) (75,000.00) S&A Budget Beginning cash balance Add: Cash Collections Total Cash available less: cash disbursements Supplies Labor Overhead Selling and Administrative Equipment purchase Dividend Total disbursements Excess (deficiency) Borrowing Repayment Interest Total Financing Ending cash balance Ju August September Quarter 40,000.00
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