Day 4-Part 1.2

Day 4-Part 1.2 - Day4:Part1.2 CashBudgets& June30,2011...

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Business Management 301 Day 4: Part 1.2 June 30, 2011
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Make-a-Friend Example Actual Sales:  January, February, and March were $100,  $160, and $200. Collections:  50% month after, 25% two months after, and  25% three months after. Projected Sales:  April, May, and June are $120, $200,  $160.  ( Scheduled   April Collections:  100+40+25=$165)   Planned Disbursements:  Monthly materials of $50 and  labor $75; April taxes of $70. March  ending cash  of $25 (minimum cash $25).   Using the information above, create a cash budget for  April, May and June.
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Expanded Cash Inflows Sales:  January: $100; February: $160; March: $200  April: $120; May: $200; June: $160. Collections:  50% one month after, 25% two months after, 25% three months after. Jan Feb Mar Apr May Jun Jul Aug Sep Total Sales $100 $160 $200 $120 $200 $160 $940 Jan $50 $25 $25 $100 Feb $80 $40 $40 $160 Mar $100 $50 $50 $200 Apr $60 $30 $30 $120 May $100 $50 $50 $200 Jun $80 $40 $40 $160 Total ? ? ? $165 $150 $180 $160 ? ? $940 Note:  These numbers are check  figures to verify  all future collections have been included. Note:  The total collected for the months marked with a ‘?’ are  unknown because we do not have enough sales data to calculate the total.
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Cash Inflows Sales:  January: $100; February: $160; March: $200  April: $120;  May: $200; June: $160. January February March One Month After (50%) ? $50 $80 Two Months After (25%) ? ? $25 Three Months After (25%) ? ? ? Total Cash Inflow ? ? ?
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Cash Inflows Sales:  January: $100; February: $160; March: $200  April: $120;  May: $200; June: $160. April May June One Month After (50%) $100 $60 $100 Two Months After (25%) $40 $50 $30 Three Months After (25%) $25 $40 $50 Total Cash Inflow $165 $150 $180
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Cash Inflows Sales:  January: $100; February: $160; March: $200  April: $120;  May: $200; June: $160. July August September One Month After (50%) $80 ? ? Two Months After (25%) $50 $40 ? Three Months After (25%) $30 $50 $40 Total Cash Inflow $160 ? ?
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Cash Outflows Planned Disbursements:  Monthly materials of $50 and labor $75;  April taxes of $70. April May June Materials (Level Production) $50 $50 $50 Labors (Level Production) $75 $75 $75 Taxes (Only in April) $70 $0 $0 Total Cash Outflow $195 $125 $125
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April May June Materials (Level Production) $50 $50 $50 Labors (Level Production) $75 $75 $75 Taxes (Only in April) $70 $0 $0 Total Cash Outflow $195 $125 $125 Net Cash Flow April May June Cash Receipts $165 $150 $180 Cash Disbursements $195 $125 $125 Net Cash Flow -$30 $25 $55 April May June One Month After (50%) $100 $60 $100 Two Months After (25%) $40 $50 $30 Three Months After (25%) $25 $40 $50 Total Cash Inflow $165 $150 $180
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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 1.2 - Day4:Part1.2 CashBudgets& June30,2011...

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