Question

Consider the following information provided by a Travel Agency:

Sales (€)
June	July	August	September	October	November
180 000	220 000	220 000	310 000	500 000	200 000

• 60% of the sales are for credit and are collected one month after the sale.
• Other receipts: €60 000 in October
• Monthly Gross Margin of 30%
• Fixed Costs: €8 000
• Taxes in July: €75 000
• Debt repayment in November: €400 000
• Cash at the Beginning of June: €50 000
• Minimum operating balance: €10 000
• Depreciations & Amortizations per month: €15 000

The financing available to the company is as follows:

1. Flexible loan up to the amount of € 50 000, at Bank A, at a rate of 2% per month. Interest is paid on repayment.
2. Flexible loan up to the amount of €100 000€, in Bank B, at a rate of 0,8% per month. The interest is paid monthly.       
3. Loan for 3 months, in Bank C, in an amount not less than €3 500, at a rate of 1,7% per month, to be paid in full at the end of the 3 months.

The treasury applications that the company can carry out are the following:

1. Acquisition of treasury securities (Bank A) without limit values, with a rate of 2% per month – interests received every month.
2. Acquisition of treasury securities (Bank B) without limit values, with a rate of 1,6% per month, interests received at the time of sale.

Build the Cash Budget.

Build the Financial Budget.

Answer 1