Lets consider the question,
Month
|
January |
February |
March |
Quarter |
| Cash balance, beginning |
64,165 |
$ |
$ |
|
| Receipts |
|
|
|
|
| Cash sales |
$137,500.00 |
$275,000.00 |
$137,500.00 |
$550,000.00 |
| Credit collections |
$400,188.00 |
$177,750.00 |
$198,750.00 |
$776,688.00 |
| Total cash available |
$601,853.00 |
$452,750.00 |
$336,250.00 |
$1,326,688.00 |
| Less disbursements: |
|
|
|
|
| Direct materials |
$136,934.65 |
$99,928.45 |
$79,538.00 |
$316,400.00 |
| Direct labour |
$84,375.00 |
$118,125.00 |
$74,250.00 |
$276,750.00 |
| Variable manufacturing overheads |
$40,625.00 |
$56,875.00 |
$35,750.00 |
$133,250.00 |
| Fixed manufacturing overheads |
$52,000.00 |
$52,000.00 |
$34,200.00 |
$198,600.00 |
| Variable selling and administrative expense |
$16,250.00 |
$32,500.00 |
$16,250.00 |
$65,000.00 |
| Fixed selling and administrative expense |
$44,580.00 |
$44,580.00 |
$44,580.00 |
$133,740.00 |
| Income taxes |
$1,500.00 |
$1,500.00 |
$1,500.00 |
$4,500.00 |
| Outstanding 2018 income taxes |
$0.00 |
$0.00 |
$21,500.00 |
$21,500.00 |
| Equipment purchases |
$121,680.00 |
$182,520.00 |
$0.00 |
$304,200.00 |
| Dividends |
$0.00 |
$0.00 |
$50,000.00 |
$50,000.00 |
| Total disbursements |
$497,944.65 |
$588,028.45 |
$357,568.00 |
$1,503,940.00 |
| Excess (deficiency) of cash available over |
|
|
|
|
| disbursements |
$103,908.35 |
($135,278.45) |
($21,318.00) |
$ (177,252.00) |
| Minimum Balance |
|
$20,000.00 |
|
|
| Financing |
|
|
|
|
| Financing at beginning |
|
|
$157,000 |
|
| Borrowings (at beginning)(Multiple of 1000,cannot be
negative) |
$0 |
$157,000 |
|
|
| Interest charges |
$0 |
$785 |
$900 |
|
| Interest payment |
|
$785 |
$900 |
|
| Repayment (at end)(multiple of 1000) |
$0 |
$0 |
$ |
|
| Total financing |
$0 |
$157,000 |
$180,000 |
|
