Managerial Accounting
5-35 Comprehensive Cash Budget (CMA adapted) (LO 4) GrowMaster Products,
a rapidly growing distributor of home gardening equipment, is formulating its plans for
the coming year. Carol Jones, the fi rm’s marketing director, has completed the following sales
forecast.
Month Sales Month Sales
January $ 900,000 July $1,500,000
February $1,000,000 August $1,500,000
March $ 900,000 September $1,600,000
April $1,150,000 October $1,600,000
May $1,250,000 November $1,500,000
June $1,400,000 December $1,700,000
Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for
preparing the cash fl ow projection. He has gathered the following information.
- All sales are made on credit.
- GrowMaster’s excellent record in accounts receivable collection is expected to continue,
- Cost of goods s