The financial information for the Rosa Caf is as follows: Budgeted Cash Sales Charge Sales August $32,000

The financial information for the Rosa Café is as follows:

Budgeted Cash Sales Charge Sales August $32,000 $16,000 September 26,500 13,000 October 28,000 13,000 November 28,000 12,000 December 30,000 15,000 Collection on charge sales averages 70% in the month following the sale, and the remaining 30% in the month following that. Purchases (cost of sales) average 35% of total revenue. Of that, 100% is paid in the month following purchase.
Payroll is on a cash basis and is forecasted to be:
October $17,000 November 16,500 December 17,500 Other budgeted expenses are as follows:
October November December Rent $2,600 $2,600 $2,600 Insurance 300 300 300 Energy costs 400 500 600 Depreciation 1,000 1,000 1,000 Loan interest 400 400 400 Other expenses 1,000 1,100 1,200 The rent, energy costs, loan interest, and other expenses are paid in cash each month as the expense is incurred. The insurance expense is paid in December each year for the entire year ($3,600).
The restaurant is making monthly payments of principal toward a bank loan. The amount is $1,200 per month. New equipment is to be purchased in October. The cash cost will be $6,600. At the same time, old equipment will be sold. The estimated gain on the sale is expected to be $600. The old equipment has a net book value of $1,000 and is to be sold for cash. In December the restaurant owner plans to pay a Christmas bonus to his staff in the amount of $3,000.
Required:
Prepare the restaurant’s cash budget for the months of October, November, and December. Assume opening bank balance on October 1 is $5,000.