>> So now let's turn our attention to the cash budget.
and in this case, it's $38,000.
in revenues during the quarter one.
that occur that are included in the cash budget.
We also have cash outflows for income taxes.
with a balance of $27,141 in cash at the end of quarter one.
and that is $25,000 identified by upper management of Hogarth.
and the cash outflows for this quarter.
at the beginning of quarter two.
Turning to quarter two, we have the same set of information.
that we owe for this quarter.
Those cash disbursements total $298,557.
with a cash balance after operations of $32,584.
so no further financing is needed during quarter two.
for quarters three and quarter four.
balance for the next one, and the same process applies.
to keep us above the $25,000 threshold.
In fact, we're down quite below that at $6,145.
in our projections for quarter four.
with our threshold at all.
about what managers what do in that situation.
for financing in quarter three.
they take out a flat loan of $20,000.
with $26,145 in cash balance at the end of quarter three.
so obviously we'll need further financing in quarter four.
outflow for interest on that loan.
in quarter four as well.
to see the need for financing.
and outflows build the cash budget.
in this example, we see the need for financing.
and influences the previously considered budgets.
to occur later on in the year.