The General Format of the Cash Budget Jan. Feb. a NOK Dec. Cash receipts = ee 0c SXXM —SXXT Less; Cash disbursements XXA _AXH oo, XN OU Net cash flow SXXB.SXXI SXXO SERV Add: Beginning cash XXC 9 XXD XX] f _XXP f _XXQ Ending cash SXXD XX] SXXQ SXXW Less: Minimum cash balance XE OXXK Mh Required total financing SXXL SXXS Excess cash balance SXXE SXXZCoulson Industries, a defense contractor, is developing a cash budget for Octo November, and December, Coulson’s sales in August and September ws $100,000 and $200,000, respectively, Sales of $400,000, $300,000, « $200,000 have been forecast for October, November, and December, Tespectiv Historically, 20% of the firm’s sales have been for cash, 50% have genera accounts receivable collected after 1 month, and the remaining 30% have genes ated accounts receivable collected after 2 months. Bad-debt expenses (un lectible accounts) have been negligible.6 In December, the firm will receive $30,000 dividend from stock in a subsidiary. The schedule of expected c receipts for the company is presented in Table 3,8, It contains the following iteA Schedule of Projected Cash Receipts for Coulson Industries ($000) Aug, Forecast sales $100 Cash sales (0.20) §20 Collections of AR: Lagged 1 month (0.50) Lagged 2 montis (0.30) Other cash receipts _ Tova cas ceips Sept, $200 a) 0 Oc. $400 § 80 Now. 800 $a $200. $40. 150 i i