Question

The following table lists data from the budget of Ritewell Publishers. Half the company’s sales are for cash on the nail; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $49, and total sales in January were $218.

	February	March	April
Total sales	$238	$258	$218
Purchases of materials
For cash	89	99	79
For credit	59	49	59
Other expenses	49	49	49
Taxes, interest, and dividends	29	29	29
Capital investment	20	0	0

Complete the cash budget in the following table. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign.)

	February	March	April
Sources of cash:
Collections on cash sales	$	$	$
Collections on accounts receivables	,	,	,
Total sources of cash	.	.	.
Uses of cash:
Payments of accounts payable	.	.	.
Cash purchases of materials	.	.	.
Other expenses	.	.	.
Capital expenditures	.	.	.
Taxes, interest, and dividends	.	.	.
Total uses of cash	.	.	.
Net cash inflow	.	.	.
Cash at start of period	100	.	.
+ Net cash inflow
= Cash at end of period	.	.	.
+ Minimum operating cash balance	100	100	100
= Cumulative short-term financing required	$	$	$

Answer 1