What SUP 1st 2nd 3rd 4th
Cash Budget Quarter Quarter Quarter Quarter Year
Operating activities
Operating cash receipts
Estimated repair hours 1,500 1,600 1,700 1,800 6,600
Professional services revenue 75,000 80,000 85,000 90,000 330,000
Purchases
Cost of expected sales 255,000 240,000 225,000 270,000 990,000
Required ending inventory 192,000 180,000 216,000 240,000 240,000
Beginning inventory (125,000) (192,000) (180,000) (216,000) (125,000)
Purchases 322,000 228,000 261,000 294,000 1,105,000
Current quarter payments 241,500 171,000 195,750 220,500 828,750
Subsequent quarter payments 16,000 80,500 57,000 65,250 218,750
Cash payments for purchases 257,500 251,500 252,750 285,750 1,047,500
Selling and administrative expenses
Advertising expense 25,000 30,000 35,000 40,000 130,000
Payroll expense 125,000 150,000 150,000 185,000 610,000
Utilities expense 15,000 18,000 17,500 19,000 69,500
Selling and administrative expenses 165,000 198,000 202,500 244,000 809,500
Operating cash payments 422,500 449,500 455,250 529,750 1,857,000
Cash from (to) operating activities 58,500 34,500 8,750 (5,750) 96,000
Investing activities
Equipment purchases (300,000) (300,000)
Equipment sales –
Cash from (to) investing activities – (300,000) – – (300,000)
Financing activities
Loan proceeds 250,000 250,000
Loan payments (20,000) (20,000) (40,000)
Cash from (to) financing activities – 250,000 (20,000) (20,000) 210,000
Change in cash 58,500 (15,500) (11,250) (25,750) 6,000
Beginning cash 25,000 83,500 68,000 56,750 25,000
Product sales revenue 425,000 400,000 375,000 450,000 1,650,000
Total revenue 500,000 480,000 460,000 540,000 1,980,000
Current quarter collections 400,000 384,000 368,000 432,000 1,584,000
Subsequent quarter collections 81,000 100,000 96,000 92,000 369,000
Operating cash receipts 481,000 484,000 464,000 524,000 1,953,000
Operating cash payments
Assumptions
Hourly repair rate 50
Pct. collections in current quarter 80%
Pct. collections in subsequent quarter 20%
Beginning accounts receivable 81,000
Cost of expected sales 60%
Required ending inventory 80%
Beginning inventory 125,000
Product sales 1st quarter of next year 500,000
Beginning accounts payable 16,000
Pct. of purchases paid in current quarter 75%
Pct. of purchases paid in subsequent quarter 25%
Beginning cash $25,000