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    Cash Budget

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    Please help with this problem in excel attached.

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    BM Accounting what the numbers mean 8th edition

    a. Cash Budget
    MARINE TECH, INC.
    Cash Budget
    For the months of April, May, and June, 2009

    April May June
    Beginning Cash Balance
    Cash Receipts:
    From cash sales made in current month - - -
    From credit sales made in:
    February (from analysis in Step 1 above) -
    March (from analysis in Step 1 above) - -
    April (from analysis in Step 1 above) - -
    May (from analysis in Step 1 above) -
    Total Cash Available $ - $ - $ -
    Cash Disbursements:
    For cost of goods sold/operating expenses incurred in:
    March (from analysis in Step 1 above) $ -
    April (from analysis in Step 1 above) - -
    May (from analysis in Step 1 above) - -
    June (from analysis in Step 2 above) -
    For payment of note payable and interest
    For capital expenditures
    For payment of income taxes
    For payment of dividends
    Total Disbursements $ - $ - $ -
    Ending cash balance $ - $ - $ -
    b. Cash Budget (revisions shown in bold)

    MARINE TECH, INC.
    Cash Budget
    For the months of April, May, and June, 2009

    April May June
    Beginning Cash Balance
    Cash Receipts: Same as cash budget in part a

    From cash sales made in current month - - -
    From credit sales made in:
    February (from analysis in Step 1 above) -
    March (from analysis in Step 1 above) - -
    April (from analysis in Step 1 above) - -
    May (from analysis in Step 1 above) -
    Total Cash Available $ - $ - $ -
    Cash Disbursements:

    For cost of goods sold/operating expenses incurred in: Same as cash budget in part a
    March (from analysis in Step 1 above) $ -
    April (from analysis in Step 1 above) $ - -
    May (from analysis in Step 1 above) - -
    June (from analysis in Step 2 above) -
    For payment of note payable and interest -
    For capital expenditures -
    For payment of income taxes -
    For payment of dividends -
    Total Disbursements $ - $ - $ -

    Excess (deficiency) of available cash
    over disbursements $ - $ - $ -
    Borrowings
    Repayments
    Interest
    Ending Cash Balance
    1. How do revenues in the income statement differ from cash receipts in the cash budget for the same period of time?
    2. How do expenses in the income statement differ from cash payments in the cash budget for the same period of time?
    3. Explain how the minimum cash balance requirement in part b of the problem affects the monthly cash budgets prepared in part a of the problem.
    4. Explain a cash management strategy that might require a minimum, as well as a maximum, cash balance of $20,000 at the end of each month.

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