,1. Petite Martinique Ltd. Had sales of A in March and B in April. Forecast sales for May, June and July are C, D and E, , respectively. The firm has a cash balance of $2,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June and July.

1) The firm makes 17% of sales for cash, 57% are collected in the next month, and the remaining 26% are collected in the second month following sale.

2) The firm receives other income of $2,000 per month

3) The firms actual or expected purchases, all made for cash, are F, G and H for the months of May through July, respectively.

4) Rent is $2,700 per month

5) Wages and salaries are 8% of the previous months sales

6) Cash dividends of $3,200 will be paid in June.

7) Payment of principal and interest of $3,500 is due in June

8) A cash purchase of equipment costing $5,900 is scheduled in July.

9) Taxes of $6,400 are due in June.

March sales 49,871, April sales 59,963, May forecast sales 69,964, June forecast sales 86,970, July forecast sales 99,918

May expected purchases 53,316. June expected purchases 69,801. July expected purchases 84,564