Toy World Inc
Running head: Toy World, Inc.
Case Study
Toy World, Inc.
Summary
I have been hired by Toy World’s treasurer Grace Jones, as her assistant, and have been given the task of preparing a cash budget for the CEO Dan Culbreth. I have been told to do a monthly budget for January to June and a daily budget for the month of January. I’m required to have this cash budget done by Sunday for a meeting with Dan and Grace. Dan will then be presenting the budget in his meeting about loan requirements, with the bankers on Monday.
Assumptions
Forecasts will not exceed a plus or minus 5% range.
Analysis
Monthly Cash Budget Worksheet | | | | | | | | | Jan | Feb | Mar | Apr | May | June | I. | Collections and Payments | | | | | | | | Gross Sales (Expected) | $500,000 | $300,000 | $280,000 | $225,000 | $200,000 | $250,000 | | Gross Sales (Realized) | $500,000 | $300,000 | $280,000 | $225,000 | $200,000 | $250,000 | | Collections | | | | | | | | Month of Sale | $171,500 | $102,900 | $96,040 | $77,175 | $68,600 | $85,750 | | 1 Month after Sale | 555,000 | 300,000 | 180,000 | 168,000 | 135,000 | 120,000 | | 2 Months after Sale | 40,000 | 46,250 | 25,000 | 15,000 | 14,000 | 11,250 | | Total Collections | $766,500 | $449,150 | $301,040 | $260,175 | $217,600 | $217,000 | | Purchases | $84,000 | $67,500 | $60,000 | $75,000 | $105,000 | $120,000 | | Payments: | | | | | | | | 2 Months before Sale | 50,400 | 40500 | 36000 | 45000 | 63000 | 72000 | | 1 Months before Sale | 36,000 | 33,600 | 27000 | 24000 | 30,000 | 42,000 | | Total Payments | $86,400 | $74,100 | $63,000 | $69,000 | $93,000 | $114,000 | | | | | | | | | II. | Cash Gain (Loss) For Month | | | | | | | | Collections | $766,500 | $449,150 | $301,040 | $260,175 | $217,600 | $217,000 | | Payments | | | | | | | | Purchases | $86,400 | $74,100 | $63,000 | $69,000 | $93,000 | $114,000 |
Case Study
Toy World, Inc.
Summary
I have been hired by Toy World’s treasurer Grace Jones, as her assistant, and have been given the task of preparing a cash budget for the CEO Dan Culbreth. I have been told to do a monthly budget for January to June and a daily budget for the month of January. I’m required to have this cash budget done by Sunday for a meeting with Dan and Grace. Dan will then be presenting the budget in his meeting about loan requirements, with the bankers on Monday.
Assumptions
Forecasts will not exceed a plus or minus 5% range.
Analysis
Monthly Cash Budget Worksheet | | | | | | | | | Jan | Feb | Mar | Apr | May | June | I. | Collections and Payments | | | | | | | | Gross Sales (Expected) | $500,000 | $300,000 | $280,000 | $225,000 | $200,000 | $250,000 | | Gross Sales (Realized) | $500,000 | $300,000 | $280,000 | $225,000 | $200,000 | $250,000 | | Collections | | | | | | | | Month of Sale | $171,500 | $102,900 | $96,040 | $77,175 | $68,600 | $85,750 | | 1 Month after Sale | 555,000 | 300,000 | 180,000 | 168,000 | 135,000 | 120,000 | | 2 Months after Sale | 40,000 | 46,250 | 25,000 | 15,000 | 14,000 | 11,250 | | Total Collections | $766,500 | $449,150 | $301,040 | $260,175 | $217,600 | $217,000 | | Purchases | $84,000 | $67,500 | $60,000 | $75,000 | $105,000 | $120,000 | | Payments: | | | | | | | | 2 Months before Sale | 50,400 | 40500 | 36000 | 45000 | 63000 | 72000 | | 1 Months before Sale | 36,000 | 33,600 | 27000 | 24000 | 30,000 | 42,000 | | Total Payments | $86,400 | $74,100 | $63,000 | $69,000 | $93,000 | $114,000 | | | | | | | | | II. | Cash Gain (Loss) For Month | | | | | | | | Collections | $766,500 | $449,150 | $301,040 | $260,175 | $217,600 | $217,000 | | Payments | | | | | | | | Purchases | $86,400 | $74,100 | $63,000 | $69,000 | $93,000 | $114,000 |