Hunt Distributing Inc.

EMAIL THIS TO HIS ECCLES EMAIL, NOT CANVAS BC HE CANT SEE THE EQUATIONS
Cash budget ($ thousands)
October 2015 through February 2017 (Actual) (Actual) (Actual)
Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Apr. 2018
Projected sales revenues $400,000.00 $450,000.00 $600,000.00 $300,000.00 $400,000.00 $500,000.00 $500,000.00 $500,000.00 $600,000.00 $700,000.00 $600,000.00 $700,000.00 $800,000.00 $825,000.00 $1,200,000.00 $350,000.00 $450,000.00 $425,000.00
Revenue collections1
30-day lagged collections $120,000.00 $60,000.00 $80,000.00 $100,000.00 $100,000.00 $100,000.00 $120,000.00 $140,000.00 $120,000.00 $140,000.00 $160,000.00 $165,000.00 $240,000.00 $70,000.00
60-day lagged collections $180,000.00 $240,000.00 $120,000.00 $160,000.00 $200,000.00 $200,000.00 $200,000.00 $240,000.00 $280,000.00 $240,000.00 $280,000.00 $320,000.00 $330,000.00 $480,000.00
90-day lagged collections $148,000.00 $166,500.00 $222,000.00 $111,000.00 $148,000.00 $185,000.00 $185,000.00 $185,000.00 $222,000.00 $259,000.00 $222,000.00 $259,000.00 $296,000.00 $305,250.00
Interest income2 $0.00 $0.00 $0.00 $54.33 $29.11 $22.19 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total cash collections $448,000.00 $466,500.00 $422,000.00 $371,054.33 $448,029.11 $485,022.19 $505,000.00 $565,000.00 $622,000.00 $639,000.00 $662,000.00 $744,000.00 $866,000.00 $855,250.00

Purchases3 $292,500.00 $390,000.00 $195,000.00 $260,000.00 $325,000.00 $325,000.00 $325,000.00 $390,000.00 $455,000.00 $390,000.00 $455,000.00 $520,000.00 $536,250.00 $780,000.00 $227,500.00 $292,500.00 $276,250.00

Payment on purchases4 $292,500.00 $390,000.00 $195,000.00 $260,000.00 $325,000.00 $325,000.00 $325,000.00 $390,000.00 $455,000.00 $390,000.00 $455,000.00 $520,000.00 $536,250.00 $780,000.00
Utilities payments5 $6,000.00 $8,000.00 $10,000.00 $10,000.00 $10,000.00 $12,000.00 $14,000.00 $12,000.00 $14,000.00 $16,000.00 $16,500.00 $24,000.00 $14,000.00 $14,000.00
Wage and salary payments6 $53,000.00 $54,000.00 $55,000.00 $55,000.00 $55,000.00 $56,000.00 $57,000.00 $56,000.00 $57,000.00 $58,000.00 $58,250.00 $62,000.00 $57,000.00 $57,000.00
Other fixed expense payments $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00
Interest on notes payable $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00 $4,333.00
Interest on line-of-credit7 $240.00 $140.37 $400.23 $0.00 $0.00 $0.00 $1,988.36 $1,834.97 $1,640.81 $1,540.68 $1,345.05 $1,312.19 $1,890.05 $1,890.05
Debt principal repayment $58,000.00 $58,000.00 $58,000.00 $58,000.00 $58,000.00 $58,000.00
Dividends $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00
Tax payments $60,000.00 $60,000.00 $60,000.00 $60,000.00 $60,000.00
Capital expenditures $500,000.00
Total disbursements $428,073.00 $518,473.37 $276,733.23 $401,333.00 $456,333.00 $909,333.00 $474,321.36 $526,167.97 $601,973.81 $599,873.68 $655,428.05 $681,645.19 $743,473.05 $977,223.05
Net increase (decrease) in cash $19,927.00 ($51,973.37) $145,266.77 ($30,278.67) ($8,303.89) ($424,310.81) $30,678.64 $38,832.03 $20,026.19 $39,126.32 $6,571.95 $62,354.81 $122,526.95 ($121,973.05)

Beginning cash balance $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00
Change in cash balalnce $19,927.00 ($51,973.37) $145,266.77 ($30,278.67) ($8,303.89) ($424,310.81) $30,678.64 $38,832.03 $20,026.19 $39,126.32 $6,571.95 $62,354.81 $122,526.95 ($121,973.05)
Cash balance before LOC/MS change $59,927.00 ($11,973.37) $185,266.77 $9,721.33 $31,696.11 ($384,310.81) $70,678.64 $78,832.03 $60,026.19 $79,126.32 $46,571.95 $102,354.81 $162,526.95 ($81,973.05)

Line-of-credit payment (borrowing) $19,927.00 ($51,973.37) $145,266.77 ($30,278.67) ($8,303.89) ($424,310.81) $30,678.64 $38,832.03 $20,026.19 $39,126.32 $6,571.95 $62,354.81 $122,526.95 ($121,973.05)
Line-of-credit (money market) balance $48,000.00 $28,073.00 $80,046.37 ($65,220.40) ($34,941.73) ($26,637.84) $397,672.97 $366,994.34 $328,162.31 $308,136.12 $269,009.80 $262,437.85 $200,083.04 $77,556.09 $199,529.14

Cash balance after LOC/MS adjustment $40,000.00 $57,154.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00

Assumptions:
1. Collections on sales equal 5% cash sales, 30% 30-day lagged, & 64% 60-day lagged (remaining 1% is uncollected)
2. Interest on funds swept to money market is earned at 1% per annum
3. Purchases equal 65% of expected sales of following month
4. Payment on purchases lag purchases by 60 days
5. Utilities payments equal 2% of current month sales revenues
6. Wages and salaries equal $50,000 plus 1% of current month sales revenues
7. Interest on line-of-credit is paid at 6% per annum