Cash Budget. The following data are from the budget of Ritewell Publishers. Half the company’s 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 $30 and total sales in January were $180.

Transcribed Image Text:

February March April Total sales 200 220 180 Cash purchases 70 80 60 Credit purchases 40 30 40 Labor and administrative expenses 30 30 30 Taxes, interest, and dividends 10 10 10 Capital expenditures 100 0 0 Complete the following cash budget: February March April Sources of cash Collections on current sales Collections on accounts 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 + Net cash inflow 10 100 = Cash at end of period + Minimum operating cash balance 100 100 100 = Cumulative short-term financing required