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(35 points) The Bunyan & Bunyan Shop has forecasted its purchases and sales for the first 5 months of 2022 as in the following table.
(35 points) The Bunyan & Bunyan Shop has forecasted its purchases and sales for the first 5 months of 2022 as in the following table. 75% of sales are on credit. On the basis of past experience, 65% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm had a cash balance of $5,000 as of the end of February, and its minimum required cash balance is $4,000. It had no beginning loan balance in March. Prepare a cash budget for March, April and May. a 10 January February March April May Purchases 17,100 19,700 29,300 20,400 24,500 Sales 25,200 15,300 25,400 30,500 26,600
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