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Schedules for the Cash Budget

# Schedules for the Cash Budget

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Details on how to creat schedules for the cash budget for customers receipts and materials.
Details on how to creat schedules for the cash budget for customers receipts and materials.

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06/16/2009

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# Love Thy Pet Inc.

, Schedule for Expected Collections from customers For the two months of January and February Month of sales November credit sales 250,000 December credit sales 300,000 January credit sales 350,000 February credit sales 400,000 Total January February (a) 50,000 (b) 0 (c) 90,000 (d) 60,000 (e) 175,000 (f) 105,000 (g) 0 (h) 200,000 315,000 365,000

Where as collections are 50% in the month of sales, 30% in the first month following the sales and 20% in the second month following the sales. a. November for January = 250,000 X .20 = 50,000 b. November for February = 250,000 X 0% = 0 c. December for January = 300,000 X .30 = 90,000 d. December for February = 300,000 X .20 = 60,000 e. January for January = 350,000 X .50 = 175,000 f. January for February = 350,000 X .30 = 105,000 g. February for January = 400,000 X 0% = 0 h. February for February = 400,000 X .50 = 200,000

Love Thy Pet Inc., Schedule for Expected Payment for Purchases of Materials For the two months of January and February Month of purchases December credit purchases 200,000 January credit purchases 150,000 February credit purchases 90,000 Total January February (a) 120,000 (b) 0 (c) 60,000 (d) 90,000 (e) 0 (f) 36,000 180,000 126,000

Where as purchases are paid 40% in the month of purchases. Therefore purchases will be paid 60% in the month following the month of purchases. a. December for January = 200,000 X .60 = 120,000 b. December for February = 200,000 X .0 = 0 c. January for January = 150,000 X .40 = 60,000 d. January for February = 150,000 X .60 = 90,000 e. February for January = 90,000 X .00 = 0 f. February for February = 90,000 X .40 = 36,000

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