Create a spreadsheet file that contains a simple monthly cash budget for the next year for the business described in the above scenario.

Assume you are thinking about starting a business and would like to forecast your cash needs Show more Step I: Assume you are thinking about starting a business and would like to forecast your cash needs for the next six months. You expect sales to be approximately $30000 per month for the first 12 months and your purchases to support sales will be approximately 60% of sales. You anticipate about 20% of your sales will be cash and 80% collected the following month. Your supplier has agreed to extend credit for 70 days at no cost (i.e. you will pay your bills on a two month lag). Your monthly expenses for rent wages utilities and so forth will be approximately $3500 per month. You have deposited $15000 in a checking account to begin your operations and would like to maintain a minimum balance of $5000 in that account. Step II: Create a simple monthly cash budget. Create a spreadsheet file that contains a simple monthly cash budget for the next year for the business described in the above scenario. Step III: Answer questions. -Explain the purpose of creating budgets. -Will you need additional funds at some point? Justify your answer Show less

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