MANAGING CASH FLOW

ABC Company, started its business in March 2018.

That company produces children's toys.
In order to gain investors trust, ABC companies prepare projected cash flow for the next 3 months.

The assumptions and data used to prepare cash flow projection are as follows:

FINANCIAL DATA
Product sales in March 2018 were 350,000
Receivable at the end of March 2018 is 25,000
Ending inventory in March 2018 is 147,000
There is no accounts payable at the end of March 2018.
Accrued Wages in March 2018 is 6,750
The cash balance in March 2018 is 8,000
Company has 100,000 long term debt. It has 6% interest per year.

SALES, PRODUCTION, AND INVENTORY ASSUMPTIONS

Sales projection for: April 2018 is 400,000, May 2018 is 470,000, June 2018 is 500,000, and July is
520,000
30% sales are made on credit and will be collected on the following month.
Company's COGS is 70% of sales.
40% inventory are purchased in credit and will be paid on the following month.
It tries to maintain 50% of COGS as an inventory at the beginning of month.
The minimum cash balance is 8,000
Owners will lend funds in case of cashflow shortage, it loan has 0.5% interest per month.

COST ASSUMPTIONS
Employee's salary is 10,000 every month. Employees also earn a commission, 1% of each month
sales.
A half of salaries and commissions will be paid in current month and another half will be paid in the
following month
Building rental per month is 5,000
Insurance expenses is 140 per month
Miscellaneous expense is 5% of monthly sales
Owner plans to purchase machines in April 2018, machines price is 95,000
Depreciation expense (include new machines) is 5,000 each month. .
The tax that should be paid by the company each month is 1% of the monthly sales.

Prepare Cash Schedule, Purchase Schedule, and Wages and Commission Schedule for April to Jun
2018.