Finance Problem Need To Be Done In Excel

Loblaw  Manufacturing has asked you to create a cash budget in order to determine its borrowing needs for the June to October period. You have gathered the following information:

 

 

 

MONTH                          SALES                                    OTHER PAYMENTS

 

June                                             $172,000                     $80,000

 

July                                     142,000                       75,000

 

August                                121,000                       70,000

 

September                            93,000                        50,000

 

October                                76,000                        45,000

 

November                                        81,000

 

 

 

April Sales:            $115,000

 

May Sales      135,000

 

 

 

Collections :  Month of sales           35%

 

Following month         55%

 

Two months after sale 10%

 

 

 

Inventory Purchases : 60% of next month’s projected Sales

 

Payments:  Month of purchase     40%

 

Following Month        60%

 

Discount if paid I month of purchase 2%

 

 

 

Minimum Cash Balance:                $25,000

 

 

 

Rate on Short Term Borrowing      6%

 

 

 

Create a cash budget for June to October. Account for short-term borrowing and payback of outstanding loans and interest expense

 

Ending unadjusted Cash Balance end of May:       $30,000

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