Day 4-Part 2.

Day 4-Part 2. - Day4:Part1 CashBudgets& June30,2011...

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Business Management 301 Day 4: Part 1 June 30, 2011
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Cash Budget: Disbursements Monthly Labor = $50,000 Paid in month incurred Monthly Materials Purchases = $35,000 Paid one month after purchase (level production) Estimate Total Monthly Outflows
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January February Labor Payments $50,000 $50,000 Material Purchases $35,000 $35,000 Total Cash Outflows $85,000 $85,000 Monthly Labor = $50,000 paid in month incurred Monthly Materials Purchases = $35,000 paid one month after purchase  level production (every month the same) Cash Budget: Disbursements
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Net Cash Flow January February Cash Receipts $90,000 $70,000 Cash Disbursements $85,000 $85,000 Net Cash Flow $5,000 -$15,000 January February Collections (Last Month) $60,000 $30,000 Collections (Current Month) $30,000 $40,000 Total Cash Receipts $90,000 $70,000 January February Labor Payments $50,000 $50,000 Material Purchases $35,000 $35,000 Total Cash Outflows $85,000 $85,000
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The Cash Budget Net Cash Flow [Inflows-Outflows] + Beginning Cash (assume = $25,000) = Cumulative Cash  [i.e. expected cash @ end  of  mo.] Minimum Cash  (assume = $25,000) + Monthly Borrowing (Repayment) Cumulative Loan Balance (assume $0 to start) Ending Cash Balance  [cumulative cash + any borrowing during mo.]
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Putting It All Together January February Net Cash Flow $5,000 -$15,000 + Beginning Cash $25,000 $30,000 = Cumulative Cash $30,000 $15,000 Minimum Cash $25,000 $25,000 + Loan or (- Repayment) $0 $10,000 = Cumulative Loan Balance $0 $10,000 Ending Cash $30,000 $25,000
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Make-a-Friend Example Actual Sales:  January, February, and March were $100,  $160, and $200. Collections:
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This note was uploaded on 11/17/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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Day 4-Part 2. - Day4:Part1 CashBudgets& June30,2011...

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