Essay About Cash Budget And Total Cash Receipts

Cyrus Brown Manufacturing
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A. With Raw data that we received from Cyrus Brown Manufacturing we have prepared a monthly
cash budget for a period of nine months, March through November:
A Cash Budget for Cyrus Brown Manufacturing
Total Cash Receipts *
$437,500
$481,250
$560,000
$787,500
$1,006,250
$1,225,000
$1,443,750
$612,500
$285,000
Less: Total cash disbursements *
$75,000
$75,000
$75,000
$225,000
$75,000
$75,000
$130,000
$75,000
$75,000
Net Cash Flow *
$362,500
$406,250
$485,000
$562,500
$931,250
$1,150,000
$1,313,750
$537,500
$210,000
Add: Beginning cash *
$50,000
$412,500
$818,750
$1,303,750
$1,866,250
$2,797,500
$3,947,500
$5,261,250
$5,798,750
Ending Cash *
$412,500
$818,750
$1,303,750
$1,866,250
$2,797,500
$3,947,500
$5,261,250
$5,798,750
$6,008,750
Less: Minimum cash balance * *
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
$50,000
Required Total Financing (notes payable)
Excess Cash Balance (marketable securities) * *
$362,500
$768,750
$1,253,750
$1,816,250
$2,747,500
$3,897,500
$5,211,250
$5,748,750
$5,958,750
* Total cash receipts = Sales forecast + Collections from Raw data given below.
* Total cash Disbursements = Salaries + Lease payments + Depreciation + Investment + Income Taxes + Misc. from the Raw data given below.
* Net cash flow = Total cash receipts – Total cash disbursements.
* Beginning cash = Ending cash from previous month.
* Ending cash = Net cash flow + beginning cash.
* * Minimum