Answer:
Cash budget
Particulars January February March
Beginning Balance $ 16,000 $ 11,200 $ 10,000
Cash Receipts $ 240,000 $ 232,000 $ 272,000
Cash for disbursements(y) $ 256,000 $ 243,200 $ 282,000
Less: Cash payments
Inventories $ 220,000 $ 164,000 $ 190,000
S & A expenses $ 62,000 $ 64,000 $ 54,000
Interest on line of credit $ 800 $ 800 $ 800
Total disbursements (z) $ 282,800 $ 228,800 $ 244,800
Excess/Deficiency x=y-z $ (26,800) $ 14,400 $ 37,200
Min. cash required $ 10,000 $ 10,000 $ 10,000
Total cash needed $ 36,800 $ (4,400) $ (27,200)
Financing $ 38,000 $ - $ -
Interest at 1% per month $ 380 $ 340
Balance cash before repayment $ 14,020 $ 36,860
Repayment $ 4,020 $ 26,860
Ending Balance $ 11,200 $ 10,000 $ 10,000
