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Forecasting and Budgeting

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Given the following information, complete the cash budget:

a. Collections occur one month after the sale

b. January's credit sales were $80,000

c. The firm has a certificate of deposit for $40,000 that matures in April

e. The monthly mortgage payment is $25,000

f. Monthly depreciation is $20,000

g. Property tax of $35,000 is due in February

February March April
Sales $150,000 $200,000 $250,000
Cash sales 30,000 20,000 60,000
Other receipts
Total cash receipts
Other disbursements
Total cash disburesments
Net change during the month
Beginning cash 30,000
Ending cash
Requierd level of cash 10,000 10,000 10,000
Excess cash or (shortage)

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Please see the attached excel file. The file contains

1. Cash budget. The ...

Solution Summary

The file contains
1. Cash budget.
2. Working notes for calculations and conceptual understanding

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