Using a spreadsheet, prepare a cash budget for New Tech for the next year (January through December)

Using a spreadsheet, prepare a cash budget for New Tech for the next year (January through December) based on the following information.

OCT NOV DEC Sales revenue (previous year) 325.0 325.0 325.0

Purchases 59.2 (December)

PAYMENT SCHEDULE

Cash sales 10%

30-day payment = 70%

60-day payment = 20%

PURCHASE SCHEDULE

Paid in first month = 40%

Paid during second 60 days = 60%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Sales Revenue 325 300 275 325 350 375 400 375 350 300 275 250

Purchases 59.0 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2 59.2

Disbursements

Freight in 4.2 4.0 5.1 5.4 7.3 6.5 6.7 6.6 6.1 7.0 5.8 5.7

Labor 40.0 39.0 38.0 42.0 38.4 44.3 42.5 41.0 38.0 39.0 39.5 38.0

Utilities, 2.5 2.2 2.4 2.5 2.5 2.8 2.7 2.5 2.6 2.6 2.6 2.4 Insurance, etc.

Salaries – selling 60.0 62.0 65.8 62.8 62.7 67.9 71.6 62.8 64.9 66.9 68.0 65.0

Commissions 5.9 5.0 5.8 6.8 6.9 7.4 8.0 7.8 6.5 6.8 6.4 6.4

Travel 7.0 7.1 6.9 6.8 7.6 7.8 8.4 7.5 7.7 7.7 7.9 7.4

Advertising 6.0 6.5 7.0 9.0 8.5 8.7 8.3 8.1 7.0 7.2 6.0 7.5

Other charges 5.0 6.0 3.0 40.0 50.0 21.5 18.3 18.7 18.9 16.0 8.5 14.0

Selling Salaries 35.0 35.0 34.0 33.0 36.0 36.0 38.0 39.0 35.0 33.0 32.0 34.0 administration

Leasing 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8 5.8

Research 8.3 10.3 15.6 7.5 8.3 7.7 7.9 6.2 6.7 6.9 6.3 8.3

Taxes 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3

Purchase of assets 40.0 45.0 33.0 350.0 500 16.8 23.8 23.0 18.0 20.0 20.0 10.0

 

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