Cash Budget Using the information below, prepare a cash budget showing expected cash receipts and disbursements for the month of May, and balance expected at May 31, 19_1.

Planned cash balance, May 1, 19_1: $60,000.

Sales for May: $800,000, half collected in month of sale, 40 percent in next month, 10 percent in third month.

Customer receivables as of May 1: $70,000 from March sales; $450,000 from April sales.

Merchandise purchases for May: $500,000, 40 percent paid in month of purchase, 60 percent paid in next month. ;
Payrolls due in May: $88,000.
Three-year insurance policy due in May for renewal: $2,000 to be paid in cash. aN Other expenses for May, payable in May: $41,000.
Depreciation for month of May: $2,000.
Accrued taxes for May, payable in December: $6,000.
Bank note due May 15: $175,000, plus $10,000 interest.
Accounts payable (from merchandise purchases), May 1: $240,000.

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