THE TRAVEL PHOTOGRAPH
ANNUAL BUDGET:
| |
May |
June |
July |
August |
| |
|
|
|
|
| Sales |
200 |
1,000 |
2,000 |
2,500 |
| |
|
|
|
|
| Cost of goods sold |
|
|
|
|
| Supplies |
40 |
200 |
400 |
500 |
| |
|
|
|
|
| Gross profit margin |
160 |
800 |
1,600 |
2,000 |
Prepare the cash flow budget considering the following elements:
1- The photograph is always paid 30 days after the sale
2- The photograph has to pay his supplies cash on delivery
3- At the beginning of June the bank account amounts to ($1,000); this means that he is using the line of credit
THE FISHING POND - Seasonal business
The Festival takes place in August; it is in operation only from May to September
| |
August |
September |
October |
November |
December |
January |
February |
| |
|
|
|
|
|
|
|
| Sales |
75,000 |
45,000 |
20,000 |
5,000 |
- |
|
|
| |
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
|
|
|
|
|
| Supplies |
15,000 |
9,000 |
4,000 |
1,000 |
- |
|
|
| Guides |
22,500 |
13,500 |
6,000 |
1,500 |
- |
|
|
| Total Cost of good sold |
37,500 |
22,500 |
10,000 |
2,500 |
- |
|
|
| |
|
|
|
|
|
|
|
| Gross profit margin |
37,500 |
22,500 |
10,000 |
2,500 |
- |
|
|
| |
|
|
|
|
|
|
|
| Operational Expenses |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
8,000 |
| |
|
|
|
|
|
|
|
| Net profit |
29,500 |
14,500 |
2,000 |
(5,500) |
(8,000) |
(8,000) |
(8,000) |
Prepare the cash flow budget for September to December considering the following elements:
1- Sales receipts
a- On average, 20% of the sales are received 30 days before the sales as deposits
b- On average, 80% of the sales are received on delivery
2- The pond pays its supplies 30 days later
3- The guides are paid the day of the sales
4- The operational expenses are paid in the same month as the purchase
5- The pond will purchase $5,000 worth of equipement in September
6- The pond will contract a loan of $4,000 in September to pay for the equipment
7- The pond will start reimbursing the loan in September at the amount of $115 per month
8- At the beginning of September the bank account amounts to $40, 000
9- What is going to happen in January and February