8. Cash budget (S30.2) Table 30.13 lists data from the budget of Ritewell Publishers. Half the company’s sales are for cash immediately; the other half are paid for with a one-month delay.

The company pays all its credit purchases with a one-month delay. Credit purchases in January were $30, and total sales in January were $180. Complete the cash budget in Table 30.14.

February March April Total sales $200 $220 $180 Purchases of materials For cash 70 80 60 For credit 40 30 40 Other expenses 30 30 30 Taxes, interest, and dividends 10 10 10 Capital investment 100 0 0

⟩ TABLE 30.13 Selected budget data for Ritewell Publishers. See Problem 8.

February March April Sources of cash Collections on cash sales Collections on accounts receivables Total sources of cash Uses of cash Payments of accounts payable Cash purchases of materials Other expenses Capital expenditures Taxes, interest, and dividends Total uses of cash Net cash inflow Cash at start of period 100

+ Net cash inflow

= Cash at end of period

+ Net cash inflow

+ Minimum operating cash balance 100 100 100

= Cumulative short-term financing required

⟩ TABLE 30.14 Cash budget for Ritewell Publishers. See Problem 8.