Cash Collections Budget

Feb March April May June July August September Total

Feb
900,000(.5) 450,000
900,000(.30) 270,000
900,000(.2) 180,000

March
975,000(.5) 487,500
975,000(.3) 292,500
975,000(.2) 195,000
April
1,125,000(.5) 562,500
1,125,000(.3) 337,500
1,125,00(.2) 225,000
May
2,200,000(.5) 1,100,000
2,200,000(.3) 660,000
2,200,000(.2) 440,000
June
1,050,000(.5) 525,000
1,050,000(.3) 315,000
1,050,000(.2) 210,000
July
900,000(.5) 450,000
900,000(.3) 270,000
900,000(.2) 180,000
August
600,000(.5) 300,000
600,000(.3) 180,000
600,000(.2)
September
1,850,000(.50) 925,000
1,850,000(.3)
1,850,000(.2)
Total 450,000 757,500 1,035,000 1,632,500 1,410,000 1,205,000 780,000 1,285,000

Cash Budget

1st Quarter 2nd quarter 3rd quarter

February March April May June July August Sept total
Cash beg 50,467 150,000 150,000 410,446.5 1,391,946.5 1,509,871.5 2,312,871.5 2,759,871.5 50,467
Cash collections 450,000 757,500 1,035,000 1,632,500 1,410,000 1,205,000 780,000 1,285,000 8,555,000
Total cash 500,467 855,967 1,185,000 2,042,946,5 2,801,946.5 2,714,871.5 3,092,871.5 4,044,871.5
available
Less
Disbursemets
Fuel (.10) 90,000 97,500 112,500 220,000 105,000 90,000 60,000 185,000 960,000
Labor (.08) 72,000 78,000 90,000 176,000 84,000 72,000 48,000 148,000 768,000
Maintenance 45,000 48,750 56,250 60,000 52,500 45,000 30,000 92,500 430,000
(.05)
Salaries to
administrative 195,000 195,000 195,000 195,000 195,000 195,000 195,000 195,000 1,560,000
Equipment 278,400
Disbursements 419,250 453,750 651,000 436,500 402,000 333,000 620,500
Taxes quarterly 277,987.5 855,575 561,837.5
(.35)

Total 402,000 975,237.5 453,750 651,000 1,292,075 402,000 333,000 1,182,337.5

Disbursements
(Dificit) Excess 98,467 (119,270.5) 731,250 1,391,946.5 1,509,871.5 2,312,871.5 2,759,871.5 2, 862,534
Financing
Borrowing 51,533 269,270.5
Repayment 320,803.5
Ending cash 150,000 150,000 410,446.5 1,391,946.5 1,509,871.5 2,312,871.5 2,759,871.5 2, 862,534

Income Statement

Income
Toiling fees 900,000
975,000
1,125,000
2,200,000
1,050,000
900,000
600,000
1,850,000 9,600,000
Expenses
960,000
768,000
430,000
1,560,000
1,038,000 4,756,000
Operating 4,844,000
Income
Interest
Expense
EBIT 4,844,000
Income TAX 1,695,400
Net Income 3,148,600
Question #3

Variables that determines the cash position of the company

 Cash collections in Financing, investing and operating activities.

 Cash disbursements in Financing, investing and operating activities.

Question #4

Based on the cash budget, it could be deduced the MAGMA minerals Inc. has the capacity to pay its first Amortization. Even if MAGMA minerals
Inc is incapacity to pay, that issue has no bearing at all. Because of the fact that Mr. Chua the owner is privilege enough to be raised from a
wealthy family, which in any time of financial would be there to helped him, to reiterate Mr. Chua is Capable to pay his debts since he has the
money and he has a wealthy family.