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Smith's Avionics Cash Budget Analysis

The document presents Smith's Avionics' cash budget for the period of June to September 2021, outlining expected cash receipts from sales, cash payments for inventory, labor, overhead and other expenses. It calculates the monthly and cumulative cash balances, investments of excess cash, and financing needs based on the net cash flows. The ending cash balance is projected to decrease from $50,000 in August to $15,000 in September due to higher expenditures and cash outflows from investments and financing.

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Camilo Toro
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30 views2 pages

Smith's Avionics Cash Budget Analysis

The document presents Smith's Avionics' cash budget for the period of June to September 2021, outlining expected cash receipts from sales, cash payments for inventory, labor, overhead and other expenses. It calculates the monthly and cumulative cash balances, investments of excess cash, and financing needs based on the net cash flows. The ending cash balance is projected to decrease from $50,000 in August to $15,000 in September due to higher expenditures and cash outflows from investments and financing.

Uploaded by

Camilo Toro
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Assignment 4 Mar 16, 2021

Smith’s Avionics
Cash Budget Jun - Sep 2021

Cash Receipts Apr May Jun Jul Aug Sep


Sales 410,000.00 400,000.00 380,000.00 360,000.00 390,000.00 420,000.00
Credit (90% of Sales) 369,000.00 360,000.00 342,000.00 324,000.00 351,000.00 378,000.00

Cash Sales - Cash receipts same month (10% sales) 41,000.00 40,000.00 38,000.00 36,000.00 39,000.00 42,000.00
Credit - Cash Receipts 1 month after N/A 73,800.00 72,000.00 68,400.00 64,800.00 70,200.00
Credit - Cash Receipts 2 month after N/A N/A 287,820.00 280,800.00 266,760.00 252,720.00
Total Cash Receipts 397,820.00 385,200.00 370,560.00 364,920.00

Cash Payments Apr May Jun Jul Aug Sep


Inventory Purchases 220,000.00 210,000.00 200,000.00 250,000.00 300,000.00 200,000.00
Variable Labour 41,000.00 40,000.00 38,000.00 36,000.00 39,000.00 42,000.00
Fixed Labour 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Overhead 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00
Fixed Debt - - 40,000.00 - - 40,000.00
Cash Dividend - - 20,000.00 - - -
Tax Installments - - 35,000.00 - - 35,000.00
Capital Purchase - - - - - 300,000.00
Depreciation (not a cash item) - - - - - -
Total Cash Payments 279,000.00 268,000.00 351,000.00 304,000.00 357,000.00 635,000.00

Cash Budget Jun Jul Aug Sep


Total Cash Receipts 397,820.00 385,200.00 370,560.00 364,920.00
Less: Total Cash Payments (351,000.00) (304,000.00) (357,000.00) (635,000.00)
Equals: Net Cash Flow 46,820.00 81,200.00 13,560.00 (270,080.00)
Plus: Beginning Cash Balance 20,000.00 50,000.00 50,000.00 50,000.00
A. Cummulative Cash Balance 66,820.00 131,200.00 63,560.00 (220,080.00)

Investments
Previous Investment Balance - 16,820.00 98,049.44 111,781.02
Cash Excess Invested from Current Month's Cash 16,820.00 81,200.00 13,560.00 -
Return on Previous Month's Investment Balance (2.1% PA) - 29.44 171.59 195.62
Less: Investment Cashed (Not Reinvested) - - - (111,976.64)
Cumulative Investment Balance 16,820.00 98,049.44 111,781.02 -

B. Plus: Net Cash Inflow (Outflow) from Investments (16,820.00) (81,200.00) (13,560.00) 111,976.64

Financing
C. Plus: Monthly Loan (Repayment) - - - 123,103.36
Cumulative Loan Balance - - - 123,103.36

Total: Ending Cash Balance (A + B + C) 50,000.00 50,000.00 50,000.00 15,000.00


Camilo Toro-Ramirez Mar 16 2021

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