Snick’s Board Shop
Cash Budget Prior Year 1 2 3
Operating activities
Operating cash receipts
Product sales revenue 300,000 309,000 318,270 327,818
Payments in the year of purchase 119,156 121,850 125,505
Payments in the year following purchase 7,500 6,271 6,413
Cash payments for purchases 152,000 126,656 128,121 131,918
Expenses
Advertising expense 2,500 2,700 2,916 3,149
Interest expense – 15,000 15,000 15,000
Investing activities
Equipment purchases (350,000) (1,000) (1,000)
Equipment sales 200 200 200
Cash from (to) investing activities – (349,800) (800) (800)
Financing activities
Loan proceeds 300,000
Assumptions
Prior year sales 300,000
Advertising expense 2,500
Depreciation expense 1,000
Interest expense 15,000
Wages expense 46,000
Supplies expense 450