Given the information that follows, prepare a cash budget for the Central City Department Store for the first six months of 20X2.
a. All prices and costs remain constant.
b. Sales are 75 percent for credit and 25 percent for cash.
c. With respect to credit sales, 60 percent are collected in the month after the sale, 30 percent in the second month, and 10 percent in the third. Bad-debt losses are insignificant.
d. Sales, actual and estimated, are:

e. Payments for purchases of merchandise are 80 percent of the following month's anticipated sales.
f. Wages and salaries are:

g. Rent is $2,000 a month.
h. Interest of $7,500 is due on the last day of each calendar quarter, and no quarterly cash dividends are planned.
i. A tax prepayment of $50,000 for 20X2 income is due in April.
j. A capital investment of $30,000 is planned in June, to be paid for then.
k. The company has a cash balance of $100,000 at December 31, 20X1, which is the minimum desired level for cash. Funds can be borrowed in multiples of $5,000. (Ignore interest on such borrowings.)

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October 20xI November 20X1 December 20x January 20x2 February 20x2 March 20X2 50,000 April 20X2 400,000 May 20X2 150,000 June 20X2 200,000 July 20X2 $300,000 $200,000 300,000 250,000 200,000 300,000 January $30,000 March $50,000 May February 4 0,000 April 50,000 une $40,000 35,000