Cash-Budget-at-Risk

Cash-Budget-at-Risk - A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...

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Assumptions: Long-term borrowing rate (bonds) 0.67% Long-term bonds outstanding $100,000.00 Short-term borrowing rate (bank loan) 1.0% monthly Short-term investing rate (marketable securities) 0.5% monthly Percent of sales for cash 40.0% Percent of sales collected 1 month after sale 35.0% Percent of sales collected 2 months after sale 25.0% COGS/Sales 55.0% (used to calculate purc Percent of purchases for cash 50.0% Percent of purchases paid 1 month after purchase 30.0% Percent of A/P paid 2 months after purchase 20.0% Monthly dividend $500.00 Minimum acceptable cash balance $2,000.00 Maximum acceptable cash balance $3,000.00 Rent $1,000.00 Utilities $500.00 Commissions (% of month's sales) 20% Monthly dividend $1,000.00 Sales Growth Rate -20% ` CASH BUDGET Prior year's sales -> Collections and Purchases Worksheet Nov Dec Sales 12,000.00 10,000.00 Collections: For cash A/R collected 1 month after sale A/R collected 2 months after sale Total collections Purchases of inventory 5,500.00 6,600.00 Payments Cash A/P paid 1 month after purchase A/P paid 2 months after purchase Total payments for inventory Net Cash Flow Calculations Total collections Interest received on short-term investments Total cash receipts Less Disbursements: Payments for inventory Purchase of fixed assets Rent Utilities A B C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48
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Interest paid on long-term borrowing Interest paid on short-term borrowing Estimated tax payments Commissions Dividend Total disbursements Net cash flow Cash Surplus or Borrowing Requirement Beginning Cash Balance Plus: Net cash flow Equals: Ending cash if no borrowing or repayment 2,000.00 Minimum acceptable cash balance Maximum acceptable cash balance Cumulative surplus (marketable securities) Cumulative short-term borrowing Ending cash balance after borrowing or investing Maximum borrowing needed 21,182.90 20,519.82 A B C 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72
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hases of raw materials) Jan Feb Mar Apr May Jun 12,000.00 14,400.00 17,280.00 20,736.00 24,883.20 29,859.84 Jan Feb Mar Apr May Jun 9,600.00 11,520.00 13,824.00 16,588.80 19,906.56 23,887.87 3,840.00 4,608.00 5,529.60 6,635.52 7,962.62 9,555.15 3,500.00 3,360.00 4,032.00 4,838.40 5,806.08 6,967.30 3,000.00 2,500.00 2,400.00 2,880.00 3,456.00 4,147.20 10,340.00 10,468.00 11,961.60 14,353.92 17,224.70 20,669.64 6,336.00 7,603.20 9,123.84 10,948.61 13,138.33 10,948.61 3,168.00 3,801.60 4,561.92 5,474.30 6,569.16 5,474.30 1,980.00 1,900.80 2,280.96 2,737.15 3,284.58 3,941.50 1,100.00 1,320.00 1,267.20 1,520.64 1,824.77 2,189.72 6,248.00 7,022.40 8,110.08 9,732.10 11,678.52 11,605.52 Jan Feb Mar Apr May Jun 10,340.00 10,468.00 11,961.60 14,353.92 17,224.70 20,669.64 0.00 0.00 0.00 0.00 0.00 0.00 10,340.00 10,468.00 11,961.60 14,353.92 17,224.70 20,669.64 6,248.00 7,022.40 8,110.08 9,732.10 11,678.52 11,605.52 10,000.00 1,000.00
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Cash-Budget-at-Risk - A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...

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