Question

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2018:

	April			May			June
Credit sales	$	319,000		$	299,000		$	359,000
Credit purchases		127,000			150,000			175,000
Cash disbursements
Wages, taxes, and expenses		43,900			11,400			62,900
Interest		10,900			10,900			10,900
Equipment purchases		79,000			148,000			0

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2018, credit sales were $189,000 and credit purchases were $129,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Answer 1

	April	May	June
Beginning cash balance	122000	84250	83000
Cash receipts
Cash collections from credit sales	225050	296050	305050
Total cash available	347050	380300	388050
Cash disbursements
Purchases	129000	127000	150000
Wages, taxes and expenses	43900	11400	62900
Interest	10900	10900	10900
Equipment purchases	79000	148000	0
Total cash disbursements	262800	297300	223800
Ending cash balance	84250	83000	164250

Working note :
	April	May	June
Cash collection for credit sales :
35% of current months credit sales	111650	104650	125650
60% of previous months credit sales	113400	191400	179400
Cash collection for credit sales	225050	296050	305050