Cash Budget. Colonnese Company, a French firm, is preparing a cash budget in French francs for the first six months of 1998. Dividends on stock investments of FF60,000 should be collected in March and again in June. Each month, fixed operating expenses for wages, rent, heat and light, etc., must be paid in the amount of FF220,000. Collections on accounts receivable are estimated as follows:

60 percent collected in month of sale 25 percent collected in month following the sale 15 percent collected in second month following the sale Payments for merchandise purchased are scheduled so that 70 percent of the payments are made in the month of purchase with the balance paid in the following month. The cash balance is estimated at FF175,000 for January 1, 1998.
Estimated net sales and purchases by month are as follows:

Income tax payments of FF100,000 and FF150,000 are to be made in February and June, respectively. A bond payable principal payment of FF80,000 will be made in February with interest of FF12,000 added. Assume that interest expense is 12 percent annually or 1 percent per month on the loans outstanding and that monthly interest is paid when accrued.
Required:
Prepare a budget of cash receipts and cash payments for each month. Since a minimum cash balance of FF150,000 must be available at the end of each month, identify the months, if any, when short-term loans will be required and the amounts of the loans. Also, indicate months, if any, when short-term loans can be repaid.

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November 1997.. December January 1998. Net Sales February... Purchases Net Sales Purchases March..... FF 650,000 FF 350,000 580,000 280,000 460,000 260,000 520,000 260,000 FF560,000 FF 320,000 550,000 640,000 380,000 April 420,000 May 700,000 400,000 June