 Once again, we're going to jump back to our step seven where we calculated the general and administrative We're going to look at the salaries later. We're going to see where that note is calculated as well Okay, so there is our general and administrative that we pulled over and then all this other stuff are going to be other Areas that we haven't put a prior budget to one's going to be dividends Are we going to pay out dividends to the shareholders and we're going to have to make an assumption on that? We have the loan interest here. So we have two loans out at this point. We're assuming that the interest rate is point 01 For a month, you know, not a yearly interest rate for like a monthly interest rate So we're saying this 12,000 here 12,000 times point 01. That's where this 120 is We're paying 120 cash on that and then we've got the loan of 500,000 Times point 01, which we also saw on the general administrative expense. And so there's that That 5,000 there purchase of equipment We don't have anything in July that we're estimated But that's another thing that we'd have to think about are we purchasing equipment for cash the cash portion of the purchase of equipment? Anything that we financed of course wouldn't be on the cash budget Okay, so then if we added all this up, I won't do the calculator But if we added all this up, we would then come out to the cash disbursements of the 427 177 And then if we subtract it out these two then We would have the cash receipts up here of 530 568 minus The 427 177 And that's going to give us 103 391 Now I'm going to make another assumption that we commonly do and in a problem commonly do in practice And that's going to be that we want to maintain a minimum balance of 40 000 That's going to be an assumption that we're going to make in this particular problem and if we Receive more than that if we're above the 40 000 each month We're going to pay off the line of credit. So we have this line of credit That's what the short term loan is we're basically saying hey if we dip under 40 000 Take out a loan. We've made a line of credit in order to do that to to have some security there And if we go over that Period that amount of 40 000 then let's pay off the short term loan. We're over that amount We're going to pay off the short term loan 12 000 and then if we Calculate our ending balance. We then have The 5 30 5 68 minus the 4 27 177 minus the 12 000 And we have the 91 391 now, okay, so that 91 391 is the ending balance of july, which will be The beginning balance of august. That's where we're going to start in august Then we're going to go through the same process again. So we'll jump through a little bit faster here Same ideas though. We got the cash receipts from customers I won't go back and pull that but we're going to pull it from the same place We pulled this and then if we add these two up, we've got the total cash available Then we're going to go through our disbursements. So we got first payments for raw materials Now this number here we got from our balance sheet last time because remember there's a timing difference This time we're going to have to bounce back to our raw materials Because even though we are in august remember the assumption is that in a cash flow We're going to we're going all the purchases we made in july. We're going to pay for in august So that's why this number here is what we're going to pay for in august and we have to jump back here and pull that number So just be careful there that we're always kind of a month off here because we're talking about cash flow Which is different than purchases when we purchased it all the rest of it's going to be the same So same this is coming from the same area. We have to jump back Same area have to jump back and pull these same numbers out. So same process in these items here And then we're going to say we have dividends So we're this problem is going to make an assumption that we did pay dividends or we're going to pay dividends We're planning on paying dividends in august So that's going to be this 10,000 that we would have to add to our budget our assumption cash dividends in this case And we don't have the interest on the loan because we paid it off last time And we still have the 5000 interest on the long-term loan And then if we added all these up if we added all these up We would get to the four uh, 45 1060 and then if we subtract this out the five 78 591 minus the cash disbursements 4 4 5 60 we come up to the one 33 5 31 And of course, we don't have to pay off the loan. We're over our minimum balance of 40 So we're not going to have any loan adjustment there and we could just pull that number down That's our ending balance for the month of august that then will be of course the Beginning balance for september. So here's the beginning balance for september same process. We'll go through it even a bit faster So we're going to pull all these numbers over this came from the same place as this If we add these two up We then come up with this the 607 5 31 Then we're going to have the disbursements once again This is going to come from the same place that we pulled this out Just remember that you got that timing difference in terms of when we received it as opposed to when we purchased it These are just going to be pulled over in the similar fashion Same all the way down We don't have the dividends this time because that's going to be a separate assumption We're going to have to make book problems going to have to give it to us real life We're going to have to make the assumption no interest on the short-term loan We still have the 5000 on the long-term loan And now we're going to assume that we had a purchase of equipment Of 130 000. So we're going to assume that we're going to purchase equipment in september 100 of 30 000 that 130 only represents the cash disbursement because we're talking about the cash disbursements here So we have that item and then if we add all these up then We're adding all these up We're getting the 5 75 6 91 And that's going to be a preliminary balance of 31 8 40 And then we're going to have an adjustment because that 31 8 40 is below The 40 000 minimum we want to have Therefore we're going to need a loan of 8 186 So that this 31 8 40 can come up to that minimum balance We want of 40 000 Okay, so there's all there's our three months if we total this up just to see what the total for the three months would be Just be careful if you do something like this You you got to remember that we're starting off at the beginning of the three month period So we're not adding these three up. We're saying okay We're starting off at the 40 000 at the beginning of july And then we're doing the total, you know for the total three month period Then we're going to add these three up and then if we add this plus this we come out to the 1 million 491 768 and then we can add these three columns up all the way down So we're adding these three columns up all the way down If we sum all these up Then we come up to the 1 4 4 7 9 28 if we subtract this number Minus this number the receipts minus the disbursements 43 8 40 And we had the total adjustments, which is the 12 minus the 8 1 6 0 because we took out a 12 000 We paid off the 12 000 loan and then we took out another 12 000 loan here So this is actually a subtraction problem And we and we brought this out and that brings our ending bounce to the 40 000 the 43 8 40 minus the 3840 so these are broken out per month. This is broken out for the total quarter