3 4 Prepare a Cash Budget for the months of January to March 2017 5 6 Sales information for November and December of 2016 and Sales forcast for January to March of 2017 are as follows 7 8 November (2016) 1,75,000 December (2016) 1,90,000 10 January (2017) 1,75,000 11 February (2017) 1,80,000 12 March (2017) 1,95,000 13 14 9 20% 15 The following information is also available from the credit manager regarding cash sales and credit sales 16 Cash sales 17 Collect after 30 days 50% 18 Collect after 60 days 30% 19 20 21 Cost of sales are 50% of each month's sales 22 These purchase are paid 30 days after the purchases are made 23 24 Monthly selling and adminsitrative expenses are as followed: 25 Rent 9,200 26 Salaries 32.000 27 Utilities 2,000 28 Office Supplies 1,500 29 30 Other Information 31 Their will be a purchase of an equipment in February for 550,000 32 The cash balance on January 1, 2017 is: $27,500 33 34