Make a cash budget for each of the calendar months of june

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Reference no: EM132591164

You have the following information on your 2021 outdoor public swimming pool operation:

Projected Cash Balance on May 31: $ 10,000

Projected sales (all collected in cash):

June $45,000

July $50,000

August $55,000

Projected operating expenses: all paid in month following the month indicated:

May $42,000

June $30,000

July $35,000

August $10,000

Additional monthly operating expenses:

Depreciation is $6000

Planned locker room reconstruction (will pay cash):

July $55,000

You have a policy of maintaining a minimum cash balance of $1,000 at the end of each month. If necessary, you will borrow (get a loan) at the beginning of the applicable month to maintain this balance All borrowings are in increments of $1,000. All repayments would be made at the end of the month in which the minimum balance can be met, after repayment of the loan and interest which is calculated at 1% per month Interest is not paid until the corresponding loan can be repaid.

There will be no outstanding loans as of May 31

Question 1: Based on the above information, make a CASH BUDGET for each of the calendar months of June and July (yes, just 2 months. Hint, set up two columns, one for each month)

Reference no: EM132591164

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