Page 1 of 2
Problem 1. It is March, and you are the record keeper for Tom’s Lawn Service. Tom wants to
plan for the second quarter of the year. Estimations are as presented below. Complete the
budget.
Directions: Complete the budget and 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 interior 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?
Tom’s Lawn Service
Cash Budget
For Second Quarter, 20____
DESCRIPTION
April
May
June
Total
Receipts:
Interior Sales
$3,600.00
$3,500.00
$4,500.00
__________
Exterior Sales
$7,000.00
$7,400.00
$9,300.00
__________
Total Receipts
$10,600.00
$10,900.00
$13,800.00
__________
Wages
$6,500.00
$6,500.00
$7,000.00
__________
Rent
$1,200.00
$1,200.00
$1,200.00
__________
Utilities
$100.00
$100.00
$100.00
__________
Supplies
$500.00
$500.00
$550.00
__________
$90.00
$90.00
$90.00
__________
Repairs
$200.00
$150.00
$150.00
__________
Insurance
$375.00
$375.00
$375.00
__________
Taxes
$1,300.00
$1,300.00
$1,500.00
__________
Equipment
________
$1,100.00
________
_
__________
Total Payments
________
________
________
__________
_________
_________
_________
Payments:
Office Expenses
Balance
H006-01.05
Page 2 of 2
Problem 2. You are the record keeper for Bill's Computer Services, a business that installs
and services computer systems for businesses and government agencies. The owner, Bill Turner,
has estimated the cash receipts and cash payments for the company for the first quarter of next
year. He has asked you to complete the cash budget.
Directions. Complete the cash budget above and answer the questions below:
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 business sales for the quarter?
4. What are the total estimated cash payments for taxes 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?
Bill's Computer Services
Cash Budget
For First Quarter, 20__
DESCRIPTION
Jan
Feb
Mar
Total
Receipts:
Business Sales
$6,500.00
$6,500.00
$6,700.00
Government Sales
$3,900.00
$4,200.00
$3,800.00
__________
__________
__________
Wages
$6,200.00
$6,200.00
$6,200.00
Rent
$1,000.00
$1,000.00
$1,000.00
Insurance
$400.00
$400.00
$400.00
Telephone
$250.00
$250.00
$250.00
Utilities
$170.00
$170.00
$130.00
$1,100.00
$1,100.00
$1,350.00
Equipment
$100.00
$300.00
$300.00
Supplies
$600.00
$600.00
$600.00
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
__________
$1,100.00
Total Payments
__________
__________
__________
__________
__________
__________
__________
Balance
__________
__________
__________
__________
Total Receipts
Payments:
Taxes
Other