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Problem 19-18 Cash Budget (LO3)

The following data are from the budget of Ritewell Publishers. Half the companys sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $150, and total sales in January were $756.

	February				March				April
Total sales	$	440			$	460			$	420
Cash purchases		130				140				120
Credit purchases		100				90				100
Labor and administrative purchases		90				90				90
Taxes, interest, and dividends		70				70				70
Capital expenditures		220				0				0

Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.)

February March April Sources of cash Collections on current sales Collections on amounts receivable Total sources of cash Uses of cash Payments of accounts payable Cash purchases Labor and administrative expenses Capital expenditures Taxes, interest, and dividends Total uses of cash Net cash inflow Cash at start of period $232 + Net cash inflow = Cash at end of period + Minimum operating cash balance $220 = Cumulative short-term financing required

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