AC112 Unit 9 Cash Budget Schedule Example

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Three months of projected receipts and payments, with each closing balance carried forward, make up this AC112 Unit 9 budget schedule for a composite dog grooming salon buying a mobile grooming van. Purdue Global AC 112, Accounting Fundamentals for Management, turns in this unit from past results to plans, and BS in Accounting students build a schedule that flags any month needing short-term borrowing. An assumptions block sets Sudsy Hound's sales forecast, a 70 and 30 percent collection pattern, supplies and wage rates, fixed payments, van terms and a $5,000 minimum balance. Receipts and payments are worked month by month. July closes $28 above the floor, August falls $467 below it and borrows $1,000, and September ends at $5,380. A reading recommends arranging a line before the down payment.

CourseAC112 Accounting Fundamentals for Management
UnitUnit 9
Paper typeBudget schedule
LengthAbout 620 words, 5 pages double-spaced
FormatAPA 7 student paper
SchoolPurdue University Global
ProgramBS in Accounting
UpdatedOctober 2026

Free sample paper for AC112 Unit 9

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July Through September With a New Van: A Unit 9 Cash Budget Schedule That Finds the Month to Borrow

[Student Name]

Purdue University Global

AC112: Accounting Fundamentals for Management

Unit 9 Budget Schedule

[Instructor Name]

[Date]

The salon's forecast, payment patterns and loan terms are composite; the managerial accounting text, liquidity study and cash report cited are real.

What this part is doingNaming the quarter, the cause of the shortfall and the borrowing month in the lead shows the schedule reaches a decision.
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Assumptions

1. Sales forecast: June $20,000 (actual); July $21,000; August $13,500; September $21,500. The forecast includes mobile van routes from mid-July.

2. Collections: 70 percent in the month of the groom, paid at pickup; 30 percent the following month from the kennel and veterinary clinic accounts.

3. Grooming supplies: 8 percent of each month's sales, paid the following month.

4. Groomers' wages: 45 percent of sales, paid in the same month.

5. Fixed payments each month: rent $2,200; utilities, card fees and booking software $900; equipment note $365; pickup van loan $407; owner withdrawals $3,000.

6. Grooming van: $72,000; $14,400 down in July; the remaining $57,600 financed over five years at 8 percent, installments of $1,168 beginning in August; fuel and insurance $450 a month from July.

7. Minimum cash balance: $5,000. Borrowing in $1,000 steps on a line at 9 percent; interest paid monthly.

8. Opening cash, July 1: $17,100.

Receipts

July: 70 percent of $21,000 is $14,700, plus 30 percent of June's $20,000, $6,000, for $20,700. August: 70 percent of $13,500 is $9,450, plus 30 percent of $21,000, $6,300, for $15,750. September: 70 percent of $21,500 is $15,050, plus 30 percent of $13,500, $4,050, for $19,100.

Payments

July: supplies $1,600; wages $9,450; fixed payments $6,872; van down payment $14,400; van operating $450. Total $32,772. August: supplies $1,680; wages $6,075; fixed payments $6,872; van installment $1,168; van operating $450. Total $16,245. September: supplies $1,080; wages $9,675; fixed payments $6,872; van installment $1,168; van operating $450; interest on the line $8. Total $19,253.

The fixed payments are $2,200 plus $900 plus $365 plus $407 plus $3,000, or $6,872.

The Schedule

July: opening cash $17,100, plus receipts $20,700, minus payments $32,772, leaves $5,028 before financing. No borrowing. Closing cash $5,028.

August: opening cash $5,028, plus receipts $15,750, minus payments $16,245, leaves $4,533 before financing, which is $467 below the minimum. Borrow $1,000. Closing cash $5,533.

September: opening cash $5,533, plus receipts $19,100, minus payments $19,253, leaves $5,380 before financing. Repaying the $1,000 would drop cash to $4,380, so the line stays drawn. Closing cash $5,380.

Quarter: receipts $55,550; payments $68,270; borrowing $1,000; closing cash $5,380, which equals the opening $17,100 plus $55,550, minus $68,270, plus $1,000.

August is the month to arrange borrowing, not because the van is unaffordable but because its first installment lands in the same month that grooming demand and collections fall to their low for the quarter.

What this part is doingThe highlighted sentence identifies the borrowing month and its cause, which is the conclusion the schedule exists to reach.
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What Is Not on the Schedule

Depreciation on the van and equipment does not appear among the payments, because it moves no cash; the cash left when the down payment was made. The interest portion of each loan installment is included, since it is paid in cash, but it is not shown separately here because the budget tracks cash, not expense (Franklin et al., 2019).

Reading for the Owner

Renata, July looks fine at $5,028, but only by $28. Any delay in collecting from the kennel, or a slower July than forecast, would move the shortfall forward a month. Firms that face uneven cash flows and costly outside borrowing tend to hold larger cash reserves for exactly this reason (Kim et al., 1998), and small businesses typically hold less than a month of outflows in cash (Farrell & Wheat, 2016). I would arrange a line of at least $5,000 before the July down payment, so it is in place whichever month is short.

What this part is doingThe reading turns the schedule into one specific action, which is what makes a budget useful to a manager.
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References

Farrell, D., & Wheat, C. (2016). Cash is king: Flows, balances, and buffer days. JPMorgan Chase Institute. https://www.jpmorganchase.com/institute/all-topics/business-growth-and-entrepreneurship/report-cash-flows-balances-and-buffer-days

Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of accounting, volume 2: Managerial accounting. OpenStax. https://openstax.org/details/books/principles-managerial-accounting

Kim, C.-S., Mauer, D. C., & Sherman, A. E. (1998). The determinants of corporate liquidity: Theory and evidence. Journal of Financial and Quantitative Analysis, 33(3), 335-359. https://doi.org/10.2307/2331099

AC112 Unit 9 instructions, in plain terms

The ninth AC112 unit asks for a budget schedule projecting cash over the coming months. Start with an assumptions block: sales forecast by month, the share collected in the month of sale and later, payment patterns for purchases, fixed costs, any financing and the minimum cash balance. Then calculate receipts and payments for each month, showing the arithmetic. Lay out the schedule in bands: beginning cash, receipts, payments, cash before financing, borrowing or repayment, and closing cash. Carry each month's closing cash into the next. Leave depreciation out, since it moves no cash. Flag the month that needs borrowing and explain why. A quarter total that reconciles helps the grader. Workbooks are often accepted; documents are two pages, with APA 7 references.

How this AC112 Unit 9 example is built

The sample lists eight assumptions, from the June actual and the forecast that includes van routes to the van's $14,400 down payment, five-year loan and a borrowing rule. Receipts are calculated for each month from current and prior sales. Payments group supplies, wages, $6,872 of fixed payments, van costs and line interest. The schedule then runs July, August and September in sequence, showing $5,028, $4,533 before borrowing and $5,380 at the close. A quarter line reconciles opening cash, receipts, payments and borrowing. The highlighted sentence explains why August is the borrowing month. A section notes why depreciation is absent, and a reading for the owner cites liquidity research and recommends a $5,000 line before July.

Where the points sit in the AC112 Unit 9 rubric

Budget schedules are marked on accurate calculations from stated assumptions and on a layout that carries cash correctly from month to month. The rubric usually checks the collection pattern first, since errors there spread through the schedule. Payments must match their timing assumptions. Excluding depreciation is a frequent scoring point. A financing band that respects the minimum balance shows understanding. Identifying the borrowing month and its cause earns interpretation credit, which AC112 values. A reconciling quarter total helps graders confirm the work. Clear labels and a short reading for the owner complete the content, with APA 7 citations for any concepts.

AC112 Unit 9 help: mistakes that cost points

Cash budgets often collect all sales in the month of sale, ignoring the credit share that arrives later. Depreciation sneaks into payments. Closing cash is not carried forward, so each month starts from the same figure. Borrowing is added without a minimum balance rule. Loan installments start in the purchase month instead of the month after. Supplies are paid in the month bought when the assumption says the next month. The reading for the owner is skipped, so the schedule never reaches a decision. Some students also round each month separately, and the quarter total then fails to reconcile by a few dollars. If your assumptions are set but the schedule will not reconcile, our team can build the budget from your figures.

Get an AC112 Unit 9 example written to your instructions

The sales forecast and collection pattern from the Unit 9 problem you were assigned drive every cell, so share them with the instructions and the rubric. The schedule comes back within 24-48h with its formulas intact. A first custom sample costs nothing, and the closing comment speaks to your tight month, not a generic one. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.

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AC112 Unit 9 questions, answered

Is a budget schedule the same as a cash flow statement?

No. A cash flow statement reports what already happened, grouped by operating, investing and financing activity. A budget schedule projects what is expected, month by month, so a manager can see trouble before it arrives. The two share vocabulary, and AC112 places them a few units apart partly so the difference registers with people who will use both.

Should the schedule be submitted as a spreadsheet?

Many sections accept or prefer a workbook, since formulas let the grader see how each cell was built. When a document is required, the schedule can be pasted in as a table with the assumptions listed above it. In either format, the figures trace back to the stated percentages, and that tracing is what a grader re-performs.

What if my problem does not give a minimum cash balance?

Then there is no floor to borrow toward, and the financing band may be unnecessary. The reading can still flag any month where closing cash turns negative, since that is a shortfall regardless of policy. Some instructors expect a stated assumption in that case, and a sentence naming a sensible minimum shows judgment rather than invention.

Where can I find a free AC112 Unit 9 sample paper?

This page holds a complete AC112 Unit 9 cash budget schedule for a grooming salon buying a van, with assumptions, monthly receipts and payments, a financing band and a reading for the owner.

Why does the AC112 Unit 9 sample keep the line drawn in September?

September ends with $5,380 before any repayment. Repaying the $1,000 would drop cash to $4,380, below the $5,000 minimum, so the borrowing stays in place into the fall.