Module 4 Cash Budget Homework Assignment
Week 4 Cash Budget Homework Assignment
You are the owner of a shop in your local mall that sells shirts. You buy your shirts from wholesalers, mark them up and sell them to the public. Below is data on your business you have collected.
Annual Sales of your business
2,000,000
All sales are cash sales
Inventory Purchases made 60 days before sales made
Shirt price is 100 percent markup from wholesale price (Wholesale price as percentage of sale price) =
50%
Sales for January next year
200,000
Sales for February next year
200,000
Monthly Rent
11,000
Staff Wages per month
25,000
Advertising per month
3,000
Phone per month
500
Utilities per month
800
Office Supplies per month
450
Insurance paid each 6 months
7,000
Insurance Payments in …show more content…
All other months are each 10 percent of annual sales.
There is an excel format example of the cash budget in the week 4 required section. This excel spreadsheet can be used as a general template for preparing your homework assignment. Remember that the example spreadsheet will have different data and timing of various cash flows.
Assignment:
1. Create a monthly cash budget that contains four separate sections (which are shown in the online lecture example and also in the excel spreadsheet example). The four sections are Key Assumptions, Cash Budget, Working Capital Loan, and Summary of cash flows. The four sections should be in the same order as shown in the excel example and in the online lecture. The cash budget should cover 12 months starting with January and ending in December. (10 points for setting up the four
You are the owner of a shop in your local mall that sells shirts. You buy your shirts from wholesalers, mark them up and sell them to the public. Below is data on your business you have collected.
Annual Sales of your business
2,000,000
All sales are cash sales
Inventory Purchases made 60 days before sales made
Shirt price is 100 percent markup from wholesale price (Wholesale price as percentage of sale price) =
50%
Sales for January next year
200,000
Sales for February next year
200,000
Monthly Rent
11,000
Staff Wages per month
25,000
Advertising per month
3,000
Phone per month
500
Utilities per month
800
Office Supplies per month
450
Insurance paid each 6 months
7,000
Insurance Payments in …show more content…
All other months are each 10 percent of annual sales.
There is an excel format example of the cash budget in the week 4 required section. This excel spreadsheet can be used as a general template for preparing your homework assignment. Remember that the example spreadsheet will have different data and timing of various cash flows.
Assignment:
1. Create a monthly cash budget that contains four separate sections (which are shown in the online lecture example and also in the excel spreadsheet example). The four sections are Key Assumptions, Cash Budget, Working Capital Loan, and Summary of cash flows. The four sections should be in the same order as shown in the excel example and in the online lecture. The cash budget should cover 12 months starting with January and ending in December. (10 points for setting up the four