The completed cash budget is available in a spreadsheet file. You can get a copy of the spreadsheet file, the file is called cashbud.exe . After downloading this file double click on it and you will be asked for a password. The company is in the process of developing the cash budget for the July through December. It has been determined that each dollar of sales requires 2 minutes of labor.
Commission is paid during the month the sale is made.
Ten percent of the inventory purchases are paid for the in the current month, with the remainder being paid in the following month. Prepare a cash budget using a computer program of your choice. What impact does this have on the cash requirements of the company. Rerun your model. Explain what happen.