 kind of like the miscellaneous stuff that you'll pick up in the problem so anything that we haven't picked up yet that is is not in the selling is probably part of the general and administrative expenses and so we're going to have here in this case we take a look at this we have salaries of administrative salaries of 11 000 so that's going to be in the you know the office the account department being included in there so we'll just have salaries for the administrative salaries 11 000 it's a fixed cost so we're just going to put 11 000 all the way across for July, August and September and we could total that up for the quarter summing the July, August and September and enter all right and then we also have this loan on the books as well so we're going to group that into the selling and I mean into the general administrative type expenses so the loan is on the books at we can see the 500 000 long term note so we're going to put the long term note in this section as well for our budgeting and we can see that we have an interest on it we're not going to put the loan we're going to put the interest on the loan and then so we have the long term monthly interest that we're going to pay and we've this problem has simplified it down so we're going to take the monthly interest rate if you see a problem that gives you the you know the yearly interest rate then of course you would have to break it down to a monthly rate so we've already broken down the rate meaning we took the yearly rate basically divided by 12 and just given the monthly rate which is 1% here so we're going to take the interest on long term note which equals that 500 000 times 0.01 so remember that obviously we moved the decimal over two places 0.01 equals and we can do that all the way across we could copy it 500 000 times 0.01 it's going to be 5000 again equals the 500 000 times 0.01 and then we could of course sum that up equals the sum of 5000 5000 5000 July August September gives us the 15 so we're just going to add those two up and that'll give us our total expenses here so we'd say this equals the 11 plus the five tab August equals the 11 plus the five tab and September equals the 11 plus the five tab we could sum this up two ways we could say the total equals the total for the quarter plus the total for the quarter or we can check that number by highlighting these three July August September gives us the 48 000 that is our total expenses okay so now let's move on to calculating part of the cash budget now when we start thinking about cash we're going to have to break down the idea of when we make a sale are we going to collect all the cash when we sell it or are we going to collect the cash afterwards at some point in the future and and when we think about our cash flow budget that's going to be important obviously so that's what we're going to basically break down and we're going to use in our cash flow budgeting as we go so let's take a look at what basically our problem says here it's saying that of our sales we're going to sell 30 percent for cash so we're going to collect the cash at the point of sale in the same month and then we're going to say that 70 percent is going to be sold on credit and we're going to say that the stuff that was sold on credit we are going to collect that cash in the following month so taking those into consideration let's think about what the cash flow would be projected to look like we're going to start with the total budgeted sales again so we're going to say what was our sales for July both cash and on account and we're going to get that from our sales budget so in July I'm going to hit equals I'm going to scroll all the way up to the top again scroll all the way at the top and here's our sales budget for July we're going to sell $494 and that's what we're going to that's what we're going to collect and well that's how much we're selling in dollars units but of course we're not going to collect it all in dollars yet and then in August we're going to say this equals and we're going to scroll all the way up to our sales budget again and we're looking for August August in dollars for 7400 tab and September we're going to say September scrolling all the way up to our sales budget we're going to sell 4824 so again we're measuring that in dollars but we are I have not yet collected all the money yet some of it was sold on account some of it was sold for cash more specifically we're going to have cash sales of 30 percent and sales on credit 70 percent so let's just first break that out and see what that looks like so we're going to say that of course in July we had total sales 494 four times 0.3 or 30 percent enter and then I'm going to say on credit