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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