Question

Good evening,

I am hoping that someone can review my answers below and let me know if my answers are correct? Thank you!

Answer 1

	Cash Budget:
					April	May	June
	Beginning balance				570000	570000	2093334
	Add: Cash collection from sales			(Note:1)	10300000	11610000	13000000
	Total cash available			1	10870000	12180000	15093334
	Less: Payments
	Cash payment for purchase			(Note:2)	4486800	5033200	5617200
	Wages and fringe benefits				3690000	3990000	4500000
	(30% of current month sales)				(12300000*0.30)	(13300000*0.30)	(15000000*0.30)
	Salaries and fringe benefits
	(3600000/12)				300000	300000	300000
	Promotion		(3900000/12)		325000	325000	325000
	Property taxes		(1480000/4)				370000
	Insurance		(1380000/12)		115000	115000	115000
	Utilities		(1600000/12)		133333	133333	133333
	Income tax		(3600000*40%)		1440000	0	0
	Total payments			2	10490133	9896533	11360533
	Preliminary cash balance			(1-2)	379867	2283467	3732800
	Borrowal/ (Repayment)			(570000-379867)	190133	-190133	0
	Ending cash balance				570000	2093334	3732800
	Note: 1- Cash collection from sales
					April	May	June
	February sales			11000000
	30% colllected two months after sales				3300000
	March sales			10000000
	70% collected the month after sale				7000000
	30% colllected two months after sales					3000000
	April sales			12300000
	70% collected the month after sale					8610000
	30% colllected two months after sales						3690000
	May sales			13300000
	70% collected the month after sale						9310000
	Total				10300000	11610000	13000000