To: President of Big Budget CompanySubject: Computer System ImplementationFrom: casey and jonDate: March, 31, 2010Summery of Analysis:First a primary sales budget was created using the assumptions provided by Big Budget Company that showed total budgeted sales of $457,500. Then a schedule of cash collections was made giving total collections equal to $345,000.Next we looked at the inventory purchase budget and determined that the amount required to purchase was $33,975. Then a schedule of cash payments was created taking into account the company’s inventory purchases, the total budgeted payments for inventory was $252,525.The next thing we had to analyze was the selling and administrative expense budget with total S&A expenses equaling $120,225 before interest was accrued. Based the expense budget we created a schedule of cash payments for S&A expenses with total payments of $97,450.A final cash budget was then made and after comparing all of the cash receipts, payments and financing activities, we were left with an ending cash balance of $12,000.
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