Using a spreadsheet, prepare a cash budget for New Tech for thenext year (January through December) based on the followinginformation.
OCT NOV DEC Sales revenue (previous year) 325.0 325.0 325.0
Purchases 59.2 (December)
PAYMENT SCHEDULE
Cash sales 10%
30-day payment = 70%
60-day payment = 20%
PURCHASE SCHEDULE
Paid in first month = 40%
Paid during second 60 days = 60%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales Revenue 325 300 275 325 350 375 400 375 350 300 275250
Purchases 59.0 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.259.2
Disbursements
Freight in 4.2 4.0 5.1 5.4 7.3 6.5 6.7 6.6 6.1 7.0 5.8 5.7
Labor 40.0 39.0 38.0 42.0 38.4 44.3 42.5 41.0 38.0 39.0 39.538.0
Utilities, 2.5 2.2 2.4 2.5 2.5 2.8 2.7 2.5 2.6 2.6 2.6 2.4Insurance, etc.
Salaries – selling 60.0 62.0 65.8 62.8 62.7 67.9 71.6 62.8 64.966.9 68.0 65.0
Commissions 5.9 5.0 5.8 6.8 6.9 7.4 8.0 7.8 6.5 6.8 6.4 6.4
Travel 7.0 7.1 6.9 6.8 7.6 7.8 8.4 7.5 7.7 7.7 7.9 7.4
Advertising 6.0 6.5 7.0 9.0 8.5 8.7 8.3 8.1 7.0 7.2 6.0 7.5
Other charges 5.0 6.0 3.0 40.0 50.0 21.5 18.3 18.7 18.9 16.0 8.514.0
Selling Salaries 35.0 35.0 34.0 33.0 36.0 36.0 38.0 39.0 35.033.0 32.0 34.0 administration
Leasing 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8
Research 8.3 10.3 15.6 7.5 8.3 7.7 7.9 6.2 6.7 6.9 6.3 8.3
Taxes 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3
Purchase of assets 40.0 45.0 33.0 350.0 500 16.8 23.8 23.0 18.020.0 20.0 10.0
