Here is the complete cash budget in columnar form. Tanya Limited Cash Budget For the Three Months Ending 31 October | | August | September | October | | :---------------------------------- | :--------- | :------------ | :---------- | | Cash Receipts | | | | | Sales Revenue | $92,000 | $96,000 | $104,800 | | Total Cash Receipts | 92,000 | 96,000 | 104,800 | | | | | | | Cash Disbursements | | | | | Raw Materials | $46,000 | $48,000 | $52,400 | | Direct Labor | $23,000 | $24,000 | $26,200 | | Manufacturing Overhead | $11,500 | $12,000 | $13,100 | | Selling & Administrative Expenses | $18,400 | $19,200 | $20,960 | | Purchase of Equipment | $0 | $0 | $10,000 | | Loan Repayment | $5,000 | $5,000 | $5,000 | | Total Cash Disbursements | 103,900| 108,200 | 127,660 | | | | | | | Net Cash Flow | (11,900)| (12,200) | (22,860)| | | | | | | Beginning Cash Balance | $30,000 | $18,100 | $5,900 | | Ending Cash Balance | 18,100 | 5,900 | (16,960)| | Minimum Required Balance | $15,000 | $15,000 | $15,000 | | Excess (Deficiency) of Cash | $3,100 | $(9,100)$ | $(31,960)$ | | | | | | | Financing | | | | | Borrowings | $0 | $10,000 | $35,000 | | Repayments | $0 | $0 | $0 | | Total Financing | 0 | 10,000 | 35,000 | | | | | | | Ending Cash Balance (after financing) | 18,100 | 15,900 | 18,040 | Explanation of Calculations: Sales Revenue: August: $1,150 \text{ units} \times \$80/\text{unit} = \$92,000$ September: $1,200 \text{ units} \times \$80/\text{unit} = \$96,000$ October: $1,310 \text{ units} \times \$80/\text{unit} = \$104,800$ Raw Materials: August: $1,150 \text{ units} \times \$40/\text{unit} = \$46,000$ September: $1,200 \text{ units} \times \$40/\text{unit} = \$48,000$ October: $1,310 \text{ units} \times \$40/\text{unit} = \$52,400$ Direct Labor: August: $1,150 \text{ units} \times \$20/\text{unit} = \$23,000$ September: $1,200 \text{ units} \times \$20/\text{unit} = \$24,000$ October: $1,310 \text{ units} \times \$20/\text{unit} = \$26,200$ Manufacturing Overhead: (50% of Direct Labor) August: $0.50 \times \$23,000 = \$11,500$ September: $0.50 \times \$24,000 = \$12,000$ October: $0.50 \times \$26,200 = \$13,100$ Selling & Administrative Expenses: (20% of Sales Revenue) August: $0.20 \times \$92,000 = \$18,400$ September: $0.20 \times \$96,000 = \$19,200$ October: $0.20 \times \$104,800 = \$20,960$ Beginning Cash Balance: August: $30,000$ (Given) September: $18,100$ (Ending balance from August) October: $5,900$ (Ending balance from September) Ending Cash Balance: Beginning Cash Balance + Total Cash Receipts - Total Cash Disbursements Excess (Deficiency) of Cash: Ending Cash Balance - Minimum Required Balance Borrowings: August: $0$ (Excess cash is positive) September: $10,000$ (To meet the minimum required balance of $15,000$, as the deficiency is $9,100$) October: $35,000$ (To meet the minimum required balance of $15,000$, as the deficiency is $31,960$) Ending Cash Balance (after financing): Ending Cash Balance + Borrowings That's 2 down. 3 left today — send the next one.