To prepare the financial budget, what would be the negative cash balance for Q1? Is it 70 000 ? If it is, why ?
Hello Julia,
Yes, you would have a negative cash balance for Q1 of 70.000€. From the cash budget, you have:
Receipts
Yes, you would have a negative cash balance for Q1 of 70.000€. From the cash budget, you have:
Receipts
- Sales from 2013 - 375.000€
- Sales from 2014 - 400.000€ (half of 1st Quarter)
Total receipts = 775.000€
Payments
- Purchase of materials - 220.000€
- Other payments - 125.000€
- Wages - 450.000€
- Taxes - 50.000€
Total payments - 845.000€
Good study!
Good study!