Project #1

# Project #1 - \$ (12/3 Cash Available Total Disbursements...

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E1D I too assumed that they have \$50K cash at the beginning of each quarter. And I also calculated it based off 3% (12 / 3). Cash Available \$1,863,000 \$2,205,000 \$2,147,000 \$1,755,000 Total Disbursements \$2,428,000 \$1,968,450 \$1,936,854 \$1,946,049 Subtotal (\$565,000) \$236,550 \$210,147 (\$191,049) Borrow/(Repay) Loan 615,000 186,550 160,147 241,049 Ending Cash Balance \$50,000 \$50,000 \$50,000 \$50,000 Hi Colleen, How did you come up with your cash dispursements for the first quarter? Here is what I came up with.  Salaries = \$1,725,000 Capital Acquisitions = \$500,000 Rent = \$75,000 Total = \$2,300,000 Amount to Borrw = \$487,000 For some reason we have a \$128,000 difference? Supplies are missing from this calculation. This is the amount of the 4th quarter supplies. Since we are told that the supplies are paid a quarter after they are expensed we should use the 4th qtr expenses to estimate 1st qtr payments. Hi Randy, That's what I figured was missing based on the amount. However, I assumed those purchases were for the  coming year, not the current. Therefore, I did not include a supplies expense in the first quarter. I guess they are  purchased in both years.   E1A+B Should these parts be done as the revenues are earned or as they are collected (cash or  accrual)? For right now I have done them as the revenues are earned, but I just want to make sure I don't get to  the next step to realize I've done it wrong.  I had troubles with these too.  I thought it was where I should do the lag calculations and it wasn't that's on E1c. I think and so did the group I worked with today thought. .. A) it is straight forward. ...the % * the the net revenues all to be used in E1c. Does anyone else agree or disagree? This is what I thought too, but it's exactly the same information on both sheets? And also, all the numbers are  the same because the current year is the same as the budgeted year? (from the info  on page 112)   Yes, I think that that is right.

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E1B I just want to be sure that I am understanding this correctly. Are the revenues from the current year  exactly the same as for the projected budget year? Template E.1.b has us enter this information and it seems  repetitive to me. Yes - this is what I came up with too (and my working group). Yes, that was how I worked the problem.  You repeat them as the current year being projected into the following  year.  Primarily you need them when you start to work the other E problems for collections, since they are  collected at different quarters and end up running into the next year. E1D
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Project #1 - \$ (12/3 Cash Available Total Disbursements...

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