Prepare a cash budget for a merchandising firm. Analyze several options to improve cash flow.

Prepare a cash budget for a merchandising firm.

Analyze several options to improve cash flow.

Compare cash flow and net income trends.

Modify the worksheet to include an additional time period.

Create a line chart comparing cash receipts and disbursements.

On January 1, Candy Cup, Inc. begins business. The company has $6,000 cash on hand and is

attempting to project cash receipts and disbursements through April 30. On May 1, a note

payable of $4,000 will be due. This amount was borrowed on January 1 to carry the company

through its first four months of operations. The unit purchase cost of the company's single product, a Candy Cup, is $6. The unit sales price is $14.50. Projected purchases and sales in units for the first four months are:

Purchases Sales

January 1,200 600

February 1,300 1,200

March 1,400 1,400

April 1,700 1,500