Cash Budget

Sales for Blue Bill Corporation are projected as follows for the months of June through November:

June $200,000
July 200,000
August 200,000
September 300,000
October 500,000
November 200,000

Credit sales account for 70% of the monthy sales and are collected one month after the sale.
Other receipts for October are $50,000.
Variable disbursements are 60% of sales each month.
Fixed disbursements are $10,000 each month.
$80,000 should be included in August for taxes.
The company is obligated to make a $400,000 debt repayment in November.
Beginning cash in June is $50,000.
Desired ending cash each month is $10,000.

Complete the monthly cash budget for Blue Bill Corporation for June through November.

Blue Bill Corporation

Cash Budget

June July August September

Sales $200,000 $200,000 $200,000 $300,000
Cash sales 60,000 60,000 60,000 90,000
Collections 140,000 140,000 140,000
Other Receipts
Total cash receipts $60,000 $200,000 $200,000 $230,000

Variable disbursements 120,000 120,000 120,000 180,000

Fixed disbursements 10,000 10,000 10,000 10,000
Other disbursements 80,000
Total cash disbursements 130,000 130,000 210,000 190,000

Net change during the month -$70,000 $70,000 -$10,000 $40,000

Beginning cash 50,000

Ending cash 10,000 10,000 10,000 10,000
Required cash -$30,000 $80,000 $0 $50,000
Excess cash to invest $70,000 $40,000
Cash borrowed $30,000
hrough November:

after the sale.

rough November.

October November
$500,000 $200,000
150,000 60,000
210,000 350,000
50,000
$410,000 $410,000

300,000 120,000
10,000 10,000
400,000
310,000 530,000

$100,000 -$120,000

10,000 10,000
$110,000 -$130,000
$100,000
$130,000