Question

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2018:

	April			May			June
Credit sales	$	315,000		$	295,000		$	355,000
Credit purchases		123,000			146,000			171,000
Cash disbursements
Wages, taxes, and expenses		43,500			11,000			62,500
Interest		10,500			10,500			10,500
Equipment purchases		75,000			140,000			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 2018, credit sales were $185,000 and credit purchases were $125,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Answer 1

	April	May	June
Beginning cash balance	118000	85250	93000
Cash receipts
Cash collections from credit sales	221250	292250	301250
Total cash available	339250	377500	394250
Cash disbursements
Purchases	125000	123000	146000
Wages, taxes and expenses	43500	11000	62500
Interest	10500	10500	10500
Equipment purchases	75000	140000	0
Total cash disbursements	254000	284500	219000
Ending cash balance	85250	93000	175250

Working note :
	April	May	June
Cash collection for credit sales :
35% of current months credit sales	110250	103250	124250
60% of previous months credit sales	111000	189000	177000
Cash collection for credit sales	221250	292250	301250