Using a spreadsheet, prepare a cash budget for New Tech for thenext year (January through December) based on the followinginformation.
OCT NOV DEC
Sales revenue (previous year) 325.0 325.0 325.0
Purchases 59.2
PAYMENT SCHEDULE
Cash sales 5 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
SalesRevenue 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 59.259.2
Disbursements
Freightin 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 40.039.0 38.0 42.0 38.4 44.3 42.5 41.0 38.0 39.0 39.538.0
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 66.968.0 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
Othercharges 5.0 6.0 3.0 40.0 50.0 21.5 18.3 18.718.9 16.0 8.5 14.0
Selling
Salaries 35.035.0 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
Researchn 8.3 10.3 15.6 7.5 8.3 7.7 7.9 6.2 6.7 6.9 6.3 8..3
development
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 ofassets 40.045.0 33.0 350.0 500 16.8 23.8 23.0 18.0 20.0 20.0 10.0
