Part A: Answer each of the following questions. Be sure to show all of your work and calculations.

CYRUS BROWN MANUFACTURING CASH FORECAST 
For Unit 5 Group Project 

March April May June July August September October November
SALES 
FORECAST 250,000.00 275,000.00 320,000.00 450,000.00 575,000.00 700,000.00 
825,000.00 350,000.00 285,000.00 

CASH COLLECTIONS 
Cash Collected 10% 
25,000.00 27,500.00 32,000.00 45,000.00 57,500.00 70,000.00 82,500.00 35,000.00 
28,500.00 
Visa Collectable 65% - 162,500.00 178,750.00 208,000.00 292,500.00 
373,750.00 455,000.00 536,250.00 227,500.00 
Amex Collectable 25% - - 
62,500.00 68,750.00 80,000.00 112,500.00 143,750.00 175,000.00 206,250.00 

Total Cash Inflows 25,000.00 190,000.00 273,250.00 321,750.00 430,000.00 
556,250.00 681,250.00 746,250.00 462,250.00 


ADMINISTRATIVE COSTS 

Manufacturing Costs (Raw Materials & Labor) 187,500.00 206,250.00 
240,000.00 337,500.00 431,250.00 525,000.00 618,750.00 262,500.00 
Paid the 
month after purchase - 187,500.00 206,250.00 240,000.00 337,500.00 431,250.00 
525,000.00 618,750.00 262,500.00 
Administrative Salaries 35,000.00 35,000.00 
35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 
Lease 
Payments 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 
15,000.00 15,000.00 
Plant Investment - - - 95,000.00 - - - - - 
Income 
Tax - - - 55,000.00 - - 55,000.00 - - 
Miscellaneous 10,000.00 10,000.00 
10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 
Total 
Cash Outflows 60,000.00 247,500.00 266,250.00 450,000.00 397,500.00 491,250.00 
640,000.00 678,750.00 322,500.00 

MONTHLY NET CASH GAIN OR LOSS 
(35,000.00) (57,500.00) 7,000.00 (128,250.00) 32,500.00 65,000.00 41,250.00 
67,500.00 139,750.00 

CUMULATIVE NET CASH GAIN OR LOSS (YTD) (35,000.00) 
(92,500.00) (85,500.00) (213,750.00) (181,250.00) (116,250.00) (75,000.00) 
(7,500.00) 132,250.00 

CASH FLOW SUMMARY 
1. Cash Balance at start of 
Month 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 
50,000.00 50,000.00 
2. Net Cash Gain (Loss) during Month (35,000.00) 
(57,500.00) 7,000.00 (128,250.00) 32,500.00 65,000.00 41,250.00 67,500.00 
139,750.00 
3. Cash balance at month end before financing 15,000.00 
(7,500.00) 57,000.00 (78,250.00) 82,500.00 115,000.00 91,250.00 117,500.00 
189,750.00 
4. Minimum cash desired 50,000.00 50,000.00 50,000.00 50,000.00 
50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 
5. Surplus Cash (or 
Deficit Cash) (35,000.00) (57,500.00) 7,000.00 (128,250.00) 32,500.00 65,000.00 
41,250.00 67,500.00 139,750.00 

EXTERNAL FINANCING SUMMARY 
6. 
External financing balance - start of the month - 35,000.00 92,500.00 85,500.00 
213,750.00 181,250.00 116,250.00 75,000.00 7,500.00 
7. New financing 
required (negative of line 5) 35,000.00 57,500.00 - 128,250.00 - - - - - 
8. 
Financing repayments (will always be negative) - - (7,000.00) - (32,500.00) 
(65,000.00) (41,250.00) (67,500.00) (7,500.00)
9. External Financing Balance 
- month-end 35,000.00 92,500.00 85,500.00 213,750.00 181,250.00 116,250.00 
75,000.00 7,500.00 - 
10. Cash balance at month-end (L3+L7+L8) 50,000.00 
50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 182,250.00 

Based on your cash budget findings, answer the following questions: 
Will 
the company need any outside financing?
What is the minimum line of credit 
that CBM will need?

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