Sample: Finance Assignment Preparation of Cash Budget
Preparation of Three Months Cash Budget for Doomy Corporation
Doomy Corporation
Sales Budget:
| April | May | June | Quarter | |||||
| Budgetedsales | 2,200,000 | 2,500,000 | 2,800,000 | 5,000,000 | ||||
| Total Sales | 2,200,000 | 2,500,000 | 2,800,000 | 5,000,000 | ||||
| ion | ||||||||
| April | May | June | Quarter | |||||
| February sales | 800,000 | - | - | 800,000 | ||||
| March sales | 1,080,000 | 720,000 | - | 1,800,000 | ||||
| April sales | - | 1,320,000 | 880,000 | 2,200,000 | ||||
| May sales | - | - | 1,500,000 | 1,500,000 | ||||
| Total Cash Collections | 1,880,000 | 2,040,000 | 2,380,000 | 6,300,000 | ||||
| MERCHANDISE PURCHASES BUDGET: | ||||||||
| April | May | June | Quarter | March | Feb | |||
| Budgeted unit sales | 2,200,000 | 2,500,000 | 2,800,000 | 5,000,000 | 1800000 | 2000000 | ||
| Required purchases | 1,100,000 | 1,250,000 | 1,400,000 | 3,750,000 | 900000 | 1,000,000 | ||
| Raw Material Recd. | 1,020,000 | 1,190,000 | 1,340,000 | 3,550,000 | 940,000 | 960000 | ||
| BUDGETED CASH DISBURSEMENTS FOR MERCHANDISE PURCHASES: | ||||||||
| April | May | June | Quarter | |||||
| Feb purchases | 192,000 | 192,000 | ||||||
| March purchases | 752,000 | 188,000 | 940,000 | |||||
| April purchases | - | 816,000 | 204,000 | 1,020,000 | ||||
| May purchases | - | - | 952,000 | 952,000 | ||||
| Total cash payments | 944,000 | 1,004,000 | 1,156,000 | 3,104,000 | ||||
| Doomy Corporation | ||||||||
| CASH BUDGET | ||||||||
| FOR THE THREE MONTHS ENDING JUNE 30 | ||||||||
| April | May | June | Quarter | |||||
| Cash balance | 100,000 | 100,000 | 100,000 | 100,000 | ||||
| Add collections from customers | 1,880,000 | 2,040,000 | 2,380,000 | 6,300,000 | ||||
| Total cash available | 1,980,000 | 2,140,000 | 2,480,000 | 6,400,000 | ||||
| Less Disbursements | ||||||||
| Merchandise purchases | 944,000 | 1,004,000 | 1,156,000 | 3,104,000 | ||||
| Labour Wages | 440,000 | 500,000 | 560,000 | 1,500,000 | ||||
| General and Administrative Exps: | ||||||||
| Salaries | 40,000 | 40,000 | 40,000 | 120,000 | ||||
| Promotion | 55,000 | 55,000 | 55,000 | 165,000 | ||||
| Property taxes | - | - | 60,000 | 60,000 | ||||
| Insurance | 30,000 | 30,000 | 30,000 | 90,000 | ||||
| Utilities | 25,000 | 25,000 | 25,000 | 75,000 | ||||
| Equipment Purchase | 28,000 | 324,000 | - | 352,000 | ||||
| Taxes paid | 244,800 | - | - | 244,800 | ||||
| Total Disbursements | 1,806,800 | 1,978,000 | 1,926,000 | 5,710,800 | ||||
| Excess (deficiency) of receipts | ||||||||
| over disbursements | 173,200 | 162,000 | 554,000 | 689,200 | ||||
| Financing: | ||||||||
| Amount Invested | 73,200 | 62,000 | 446,000 | 581,200 | ||||
| Borrowings | - | - | - | |||||
| Repayments | - | - | - | |||||
| Interest | - | 8,000 | 8,000 | |||||
| Total financing | - | - | (8,000) | (8,000) | ||||
| Cash balance, ending | 100,000 | 100,000 | 100,000 | 100,000 | ||||
