Efectivo presupuestado The company Exportemos, S.A

The company Exportemos, S.A., provides the following information to prepare a cash budget for the next six months, starting January 1, showing the schedules for reaching the budget, and offering suggestions about amount and time to invest the funds or request loans.

Sales are made 50% in cash and 50% within one month. Last month $900,000 was sold and the following months expected.

A taxable income of $3,420,000 was earned last year.

The company rents part of its building for $200,000 per year and charges $16,666 per month. Depreciation is $600,000 per year. Interest on various items

• A project was accepted to replace an asset whose price is $90,000. Its purchase will take place in March and the sale of the old asset will return $60,000 in May: Installing the new asset costs $10,000.
•  Salaries of $250,000 will be paid during the first four months and $280,000 for the next two.
• The purchases represent 65% of what is expected to be sold the following month.
• The tax rate is 35%, which is paid monthly.
• The company has $1,000,000 of funds invested in December for four months at 0.5% per month, payable monthly.
• The company has a policy of keeping a minimum of $50,000 in banks. The beginning balance is $40,000
• Loans are only granted in multiples of $10,000, with interest at 1% per month. Ordered on the first day of the month, in which they are needed and paid on the last day of the month in which there are surpluses

1. Collection slip:

credit sales are collected on a one-month term or next month basis.

1. statement of invested funds:

$1,000,000 was invested at 0.5% per month, paid monthly for 4 months. At the end the investment is recovered. the return on investment per month is;

1,000,000 X 0.5% = $5,000/month.

                                        January      February     March     April

Monthly Profit:                5,000         5,000           5,000      5,000

Investment recovery:                                                          1,000,000 

                                         $5,000        $5,000        $5,000     1,005,000

1. purchase or supplier list

suppliers are paid 65% of what is planned to be sold the following month.

1. Tax Schedule:

35% is the annual tax payable on taxable income of $3,420,000.

3,420,000 the total tax due is: $3,420,000 X 35% = $1,197,000 per year, or 1197000/12= $99, 750 per month;

                  January    February    march      April         May         June

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