Name: Marthaley Mhericka C.

Silva BSHRM-1 Sub: HOSM111B

ACTIVITY for FINANCIAL PLANNING TOOLS AND CONCEPTS

JOHANNA ALVAREZ owns and operates JA- BREADWOTH COMPANY which sells a wide
variety of cupcakes. She has compiled the following data and information in order to put together
a cash budget for June and July, 2020.

June Collection

Total sales 227,500

Cash sales 136,500
Accounts receivable collections- June 68,250
Accounts receivable collections- July 12,040
Total cash collections 216,790

Solutions

65,000 x 3.50= 227,500

227,500 x 60%= 136,500
(227,500 x 40%) x 75%= 68,250
(43,000 x 3.5 x 40%) x 20%= 216,790

July Collection

Total sales 343,000

Cash sales 205,800
Accounts receivable collections- June 102,900
Accounts receivable collections- July 18,200
Total cash collections 326,900

Solutions

98,000 x 3.50= 343,000

343,000 x 60%= 205,800
(343,000 x 40%) x 75%=102,900
(227,500 x 40%) x 20%= 18,200
 JA- BREADWOTH COMPANY
Cash Budgets for June and July 2020

June July
Beginning cash balance 6,000 5,000
Cash collections 216,790 326,900
Total Cash Available 222,790 331,900

Cash Disbursements

Purchases 204,500 276,500

Wages 10,000 10.000
Rent 4,000 4,000
Utilities 3,500 3,500
Insurance 2,500 2,500
Advertising 2,290 2,290
Total Disbursements
Minimum Cash Balance
Total Cash Needs
Excess (Deficiency)

Financing

Borrowings 9,000
Repayments 9,000.00
Interest 105.00
Total Financing 9,000 9,105.00
Ending Cash Balance 5,000 24,005.00