Precision Machines
Student Note: Fill in the light yellow cells
Data:
November December January February March April May June
Annual Cost of borrowing 10.00%
Minimum Cash Balance $5,000.00
Beginning Cash Balance $7,500.00
Revenues (Sales) $40,000.00 $50,000.00 $48,000.00 $55,000.00 $35,000.00 $50,000.00 $65,000.00 $40,000.00
Cash Collections November December January February March April May June
First Month (30%) $12,000.00 $15,000.00 $14,400.00 $16,500.00 $10,500.00 $15,000.00 $19,500.00 $12,000.00
Second Month (35%) 14,000.00 17,500.00 16,800.00 19,250.00 12,250.00 17,500.00 22,750.00
Third Month (35%) 14,000.00 17,500.00 16,800.00 19,250.00 12,250.00 17,500.00
Total Collections $45,900.00 $50,800.00 $46,550.00 $46,500.00 $49,250.00 $52,250.00
Cash Disbursements
Material Purchases
Salaries 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
Wages 3,000.00 3,500.00 3,000.00 3,200.00 3,500.00 3,000.00
Other Expenses
Capital Expenditure 45,000.00
Dividends 1,000.00 1,000.00
Interest
Total Disbursements
Cash flows
Net cash flows
Cumulative cash flows
Minimum Cash Balance
Cash Surplus or (Deficit)
Recommendations:
