Helens Fashion Designs

I.
Sales

Collections and Payments:

Collections and Payments:
May
$180,000

June
$180,000

July
$360,000

Collections:
1st month
2nd month
3rd month
Total collections

August
$540,000

September
$720,000

54,000
270,000
27,000
$351,000

Purchases Payments

126,000

October
$360,000

72,000
405,000
54,000
$531,000

36,000
540,000
81,000
$657,000

882,000

306,000

Cash Budget, Aug-Oct

August

Beginning Cash

201,300

Receipts:
Collections

$351,000

Total Cash Available

552,300

Disbursement:
Labor and raw materials
Administrative salaries
Lease payment
Misc. expenses
Income tax
Progress payment

126,000
27,000
9,000
2,700

($164,700)

Net cash Inflow (Outflow)

Minimum Cash Balance
Ending Balance

387,600
$531,000
918,600
882,000
27,000
9,000
2,700
63,000

October

90,000
$657,000
747,000
306,000
27,000
9,000
2,700
180,000

Total Disbursement

Borrowings maintain the minimum Balance

September

($983,700)

($524,700)

387,600
90,000
0

($65,100)
$222,300
90,000
90,000
155,100
(132,300)
387,600
90,000
90,000

Hint:
To Calculate Total Cash Available= Beginning Balance + Total Collections
To Calculate Net Cash Inflow/Outflow = Total Cash Available - Total
Disbursement
To Calculate Ending Balance=
For the Month of Aug= 387,600+ Borrowing
= 387,600+0 = 387,600

For the Month of Sep= (65,100) + Borrowing= -65,100+155,100 = 90,000

For the Month of Oct= 222,300- Borrowing= = 222,300-132300= 90,000
(Borrowing is Minus from the Net Cash Inflow as Borrowing done in September is being
repaid in the month of Oct

Integrated Case: 14 - 2