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7-14) Cash Budgeting Mudison Walter recently leased spoce in the Northside Mall and opened a new business, Madison's Florist. Business has been good, but Madison

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7-14) Cash Budgeting Mudison Walter recently leased spoce in the Northside Mall and opened a new business, Madison's Florist. Business has been good, but Madison has frequendy run out of cash. This has necessitated late payment on certain orders, which, in tam, is beginning to casse a problem with suppliers. Madison plans to bocrow from the bank to have cash ready as necded, but fisst she needs a forecast of just how much she must berrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs witl be especially high. Sales are made on a caah basis only. Madition': purchases mast be pesid for during the following moonth. Madison pays herself a salary of $6,000 per month, and the rent is $3,000 per month in atditiont, she tmust make a tax paymetat of $9,000 in Dectmber. The curreat exth on hasd (on December 1) is 5800 . De Madison bas agreed to maintain an average bank balance of $2,000 - Hist is her target cach talance. (Disregard till cash, which is insignificant because Modiua keeps only a mall artount en tand in onjer to lessen the chances of tobbery.) The estimaied sales and purchases fot December, Janwary, and Febriary are shome belew. Furthaes: during November amounted to 5140,000 a. Prepess a cath bealget for Decenber, Jahuary, aid fetruan) What whild the conipany'e losin recesirements ke at the ent or Deccenter in this ceat? 7-14) Cash Budgeting Mudison Walter recently leased spoce in the Northside Mall and opened a new business, Madison's Florist. Business has been good, but Madison has frequendy run out of cash. This has necessitated late payment on certain orders, which, in tam, is beginning to casse a problem with suppliers. Madison plans to bocrow from the bank to have cash ready as necded, but fisst she needs a forecast of just how much she must berrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs witl be especially high. Sales are made on a caah basis only. Madition': purchases mast be pesid for during the following moonth. Madison pays herself a salary of $6,000 per month, and the rent is $3,000 per month in atditiont, she tmust make a tax paymetat of $9,000 in Dectmber. The curreat exth on hasd (on December 1) is 5800 . De Madison bas agreed to maintain an average bank balance of $2,000 - Hist is her target cach talance. (Disregard till cash, which is insignificant because Modiua keeps only a mall artount en tand in onjer to lessen the chances of tobbery.) The estimaied sales and purchases fot December, Janwary, and Febriary are shome belew. Furthaes: during November amounted to 5140,000 a. Prepess a cath bealget for Decenber, Jahuary, aid fetruan) What whild the conipany'e losin recesirements ke at the ent or Deccenter in this ceat

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