1. Prepare a monthly cash budget for the first quarter of the fiscal year beginning July 1, assuming the following facts:

a. Cash collections typically average 50% of charges. Cash is received, on average, 40% in the month of service, 30% in the next month, 15% in the second month after service, 5% each in the next two months and 5% is uncollectible.

b.Charges for February, March, April, May, and June were $300.000, $400,000, $400,000, $200,000 and $500,000, respectively. Charges for July, August and September are expected to be $400,000, $200,000 and $300,000.

c.The cash balance at June 30 is expected to be $100,000. Monthly interest is expected to be .1% on the end of month cash balance.

d.Cash outflows are anticipated to be 90% of average receipts for the quarter.