Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 41

Cash Budget Carla Inc. has the following budgeted data for 2010:

Cash balance, beginning	$ 10,000
Collections from customers	150,000
Expenses:
Direct materials purchases	25,000
Operating expenses	50,000
Payroll	75,000
Income taxes	6,000
Machinery purchases	30,000

Operating expenses include $20,000 depreciation for buildings and equipment. The company requires a minimum cash balance of $20,000.

Required Compute the amount the company needs to finance or the excess cash available for Carla to invest.

Step 1 of 2

Cash disbursement is the cash payment made by the individual or the company is a specified period of time which could be week, month, year etc. These payments are made against the purchases made by firm or the operating expense which occur.