Cyrus Brown Manufacturing

A. With Raw data that we received from Cyrus Brown Manufacturing we have prepared a monthly

cash budget for a period of nine months, March through November:

A Cash Budget for Cyrus Brown Manufacturing

2004 Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov.

Total Cash Receipts * $437,500 $481,250 $560,000 $787,500 $1,006,250 $1,225,000 $1,443,750 $612,500 $285,000

Less: Total cash disbursements * $75,000 $75,000 $75,000 $225,000 $75,000 $75,000 $130,000 $75,000 $75,000

Net Cash Flow * $362,500 $406,250 $485,000 $562,500 $931,250 $1,150,000 $1,313,750 $537,500 $210,000

Add: Beginning cash * $50,000 $412,500 $818,750 $1,303,750 $1,866,250 $2,797,500 $3,947,500 $5,261,250 $5,798,750

Ending Cash * $412,500 $818,750 $1,303,750 $1,866,250 $2,797,500 $3,947,500 $5,261,250 $5,798,750 $6,008,750

Less: Minimum cash balance * * $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000

Required Total Financing (notes payable)

Excess Cash Balance (marketable securities) * * $362,500 $768,750 $1,253,750 $1,816,250 $2,747,500 $3,897,500 $5,211,250 $5,748,750 $5,958,750

* Total cash receipts = Sales forecast + Collections from Raw data given below.

* Total cash Disbursements = Salaries + Lease payments + Depreciation + Investment + Income Taxes + Misc. from the Raw data given below.

* Net cash flow = Total cash receipts - Total cash disbursements.

* Beginning cash = Ending cash from previous month.

* Ending cash = Net cash flow + beginning cash.

* * Minimum