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1. Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2002

	April	May	June
Credit Sales	$330,000	$372,000	$432,000
Credit purchases	132,000	150,000	185,000
Cash disbursements
Wages, taxes, and expenses	20,400	22,200	25,200
Interest	9,600	9,600	9,600
Equipment purchases	70,000	84,000	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 2002, credit sales were $210,000, and credit purchases were $156,000. Using this information, complete the following cash budget:

	April	May	June
Beginning cash balance	$300,000
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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