Answer To: Hello Guys This assessment has three parts Video presentation part I'll take care of it. you please...
Khushboo answered on Feb 18 2021
1. Cash budget and debt financing
a. Cash budget for 6 months
Particulars
January
February
March
April
May
June
Total
Opening cash balance
36,000
32,933
31,866
4,449
(18,518)
(39,265)
36,000
Cash collections
Cash sales
49,000
43,000
36,000
36,500
27,600
24,500
2,16,600
Credit sales - collected in month of sale 30%
58,800
51,600
43,200
43,800
33,120
29,400
2,59,920
collection in the following month 50%
1,04,000
98,000
86,000
72,000
73,000
55,200
4,88,200
Collection in 2nd following month 20%
28,800
41,600
39,200
34,400
28,800
29,200
2,02,000
Total cash collection
2,40,600
2,34,200
2,04,400
1,86,700
1,62,520
1,38,300
11,66,720
Total cash available
2,76,600
2,67,133
2,36,266
1,91,149
1,44,002
99,035
12,02,720
Cash Payments
Payment for material and labor
Paid in same month 30%
52,500
45,600
47,250
41,250
29,100
27,000
2,42,700
Paid in following month 70%
1,33,000
1,22,500
1,06,400
1,10,250
96,250
67,900
6,36,300
-
Rent expense
7,500
7,500
7,500
7,500
7,500
7,500
45,000
Utilities expense
4,500
4,500
4,500
4,500
4,250
4,250
26,500
Supervisor salary
9,167
9,167
9,167
9,167
9,167
9,167
55,002
Administration wages
25,000
25,000
25,000
25,000
25,000
25,000
1,50,000
Annual insurance
9,000
9,000
General office expense
12,000
12,000
12,000
12,000
12,000
12,000
72,000
Purchase of machine
20,000
20,000
Service charges on machine
450
450...