COMM 203 - F18 - C19 - S-T Fin Plan.pptx

# Cash collections formula the cash budget short term

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Cash Collections Formula The Cash Budget Short-Term Financial Plan Saskatchewan Kitesurfing School (SKKS) Payment of Accounts: 57.35% of Sales Expenditures (Incl. Taxes): 22.88% of Sales Quarterly Financial Expenses: \$515.80 Capital Expenditures in Q1: \$123,550 Cash Collection Schedule Beginning Receivables in Q1: \$75,235 Sales Q1: \$74,550 Q2: \$65,215 Q3: \$51,730 Q4: \$89,345 Surfing in the Prairies is really unique! We can consider the collections. We have The ending receivables are as follows Ending Receivables Formula Next, we start the analysis of the cash disbursements in Q2 . As a result, we have 1 Cash Collections Beginning Receivables 2 Sales Q2 1 Cash Collections 37,275 65,215 2 Q2 Cash Collections \$69,882.50 Ending Receivables Beginning Receivables Sales Cash Collections Q2 Ending Receivables 37,275 65,215 69,882.50 Q2 Ending Receivables \$32,607.50

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Cash Disbursements Formula Net Cash Inflow Equation The Cash Budget Short-Term Financial Plan Saskatchewan Kitesurfing School (SKKS) Payment of Accounts: 57.35% of Sales Expenditures (Incl. Taxes): 22.88% of Sales Quarterly Financial Expenses: \$515.80 Capital Expenditures in Q1: \$123,550 Cash Collection Schedule Beginning Receivables in Q1: \$75,235 Sales Q1: \$74,550 Q2: \$65,215 Q3: \$51,730 Q4: \$89,345 Surfing in the Prairies is really unique! The cash disbursements are as follows The net cash inflow is as follows Cash Disbursements Expenses Net Cash Inflow Cash Collections Cash Disbursements Q2 Payment of Accounts 65,215 0.5735 Q2 Payment of Accounts \$37,400.80 Q2 Expenditures (Incl. Taxes) 65,215 0.2288 Q2 Expenditures (Incl. Taxes) \$14,921.19 Q2 Quarterly Financial Expenses \$515.80 Q2 Cash Disbursements 37,400.80 14,921.19 515.80 Q2 Cash Disbursements \$52,837.79
Cash Collections Formula The Cash Budget Short-Term Financial Plan Saskatchewan Kitesurfing School (SKKS) Payment of Accounts: 57.35% of Sales Expenditures (Incl. Taxes): 22.88% of Sales Quarterly Financial Expenses: \$515.80 Capital Expenditures in Q1: \$123,550 Cash Collection Schedule Beginning Receivables in Q1: \$75,235 Sales Q1: \$74,550 Q2: \$65,215 Q3: \$51,730 Q4: \$89,345 Surfing in the Prairies is really unique! Next, we investigate the cash collections in Q3 . First, we establish the beginning receivables We can consider the collections. We have The ending receivables are as follows 1 Cash Collections Beginning Receivables 2 Sales Q2 Net Cash Inflow 69,882.50 52,837.79 Q2 Net Cash Inflow \$17,044.71 Q3 Q2 Beginning Receivables Ending Receivables Q3 Beginning Receivables \$32,607.50 Q3 1 Cash Collections 32,607.50 51,730 2 Q3 Cash Collections \$58,472.50

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The Cash Budget Short-Term Financial Plan Saskatchewan Kitesurfing School (SKKS) Payment of Accounts: 57.35% of Sales Expenditures (Incl. Taxes): 22.88% of Sales Quarterly Financial Expenses: \$515.80 Capital Expenditures in Q1: \$123,550 Cash Collection Schedule Beginning Receivables in Q1: \$75,235 Sales Q1: \$74,550 Q2: \$65,215 Q3: \$51,730 Q4: \$89,345 Surfing in the Prairies is really unique!
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