- Here are some important figures from the budget of NashvilleNougats, 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 ofits credit sales will never be collected, 35 percent of its saleswill be collected in the month of the sale, and the remaining 60percent will be collected in the following month. Credit purchaseswill be paid in the month following the purchase.
In March 2002, credit sales were$210,000, and credit purchases were $156,000. Using thisinformation, 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 | | | |
