Cash Budget
Sales for Blue Bill Corporation are projected as follows for the months of June through November:
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June
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$200,000
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July
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200,000
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August
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200,000
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September
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300,000
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October
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500,000
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November
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200,000
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Credit sales account for 70% of the monthy sales and are collected one month after the sale.
Other receipts for October are $50,000.
Variable disbursements are 60% of sales each month.
Fixed disbursements are $10,000 each month.
$80,000 should be included in August for taxes.
The company is obligated to make a $400,000 debt repayment in November.
Beginning cash in June is $50,000.
Desired ending cash each month is $10,000.
Complete the monthly cash budget for Blue Bill Corporation for June through November
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Blue Bill Corporation
Cash Budget
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June
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July
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August
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September
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October
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November
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Sales
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Cash sales
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Collections
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Other Receipts
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Total cash receipts
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Variable disbursements
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Fixed disbursements
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Other disbursements
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Total cash disbursements
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Net change during the month
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Beginning cash
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Ending cash
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Required cash
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Excess cash to invest
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Cash borrowed
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