Application Problem 10-1
Business Budgeting
It is March, and you are the record keeper for Mendoza Plumbing Services. Anita Mendoza wants to plan for the second
quarter of the year. She has estimated the cash receipts and payments for Mendoza Plumbing Services for April through
June. She has asked you to complete the cash budget.
a. Complete the cash budget below. Use the demonstration problem as a guide.
Note:
Word 2007-You must click “Insert, Shapes, Lines” to insert the lines (Doesn’t matter what color the lines are).
Word 2003-You must click “Insert, Picture, Autoshapes” to insert the lines (look down at the bottom of your
screen for the lines).
b. Answer these questions about the completed cash budget.
1. Which cash payments are fixed cash payments?
2. Which cash payments are variable cash payments?
3. What are the total estimated cash receipts from residential sales for the quarter?
4. What are the total estimated cash payments for repairs for the quarter?
5. In what month(s) is there a positive cash flow?
6. In what month(s) is there a negative cash flow?
7. Is the cash flow for the entire quarter positive or negative?
DESCRIPTION
Receipts:
Residential Sales
Commercial Sales
Total Receipts
Payments:
Wages
Rent
Utilities
Supplies
Office Expenses
Repairs
Insurance
Taxes
Equipment
Total Payments
APRIL
MAY
JUNE
7200.00
14000.00
7000.00
14800.00
9000.00
18600.00
13000.00
2400.00
200.00
1000.00
180.00
400.00
750.00
2600.00
13000.00
2400.00
200.00
1000.00
180.00
300.00
750.00
2600.00
2200.00
14000.00
2400.00
200.00
1100.00
180.00
300.00
750.00
3000.00
TOTAL
Balance
Check Point: Total estimated balance=$5,510.00
Should equal
Print using PrimoPDF, Save file as “YourName-CashBudget”. Upload to your class folder.