Question

Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2016:

	April			May			June
Credit sales	$	317,000		$	297,000		$	357,000
Credit purchases		125,000			148,000			173,000
Cash disbursements
Wages, taxes, and expenses		43,700			11,200			62,700
Interest		10,700			10,700			10,700
Equipment purchases		77,000			144,000			0

The company predicts that 5 percent of its credit sales will never be collected, 25 percent of its sales will be collected in the month of the sale, and the remaining 70 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2016, credit sales were $187,000, and credit purchases were $127,000. Using this information, complete the following cash budget. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.16.)

		April		May		June
Beginning cash balance	$	120,000	$		$
Cash receipts
Cash collections from credit sales
Total cash available	$		$		$
Cash disbursements
Purchases	$		$		$
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements	$		$		$
Ending cash balance	$		$		$

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Answer 1

Cash Budget
	April	May	June
Beginning cash balance	120,000	71,750	77,000
Cash receipts
Collections	210,150	296,150	297,150
Total cash available	330,150	367,900	374,150
Cash disbursements
Purchases	127,000	125,000	148,000
Wages,taxes and expenses	43,700	11,200	62,700
Interest	10,700	10,700	10,700
Equipment purchases	77,000	144,000	-
Total cash disbursements	258,400	290,900	221,400
Ending cash balance	71,750	77,000	152,750