Application/theory (excel problem)
Problem - Cash Budget
The following information pertains to Amigo Corporation:
	Month		Sales	Purchases
	July		$60,000	$20,000
	August		68,000	24,000
	September		76,000	28,000
	October		84,000	32,000
	November		96,000	36,000
	December		120,000	40,000
	Cash is collected from customers in the following manner:
		Month of sale		40%
		Month following sale		50%
		Two months following sale	10%
	50% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required:
a.	Prepare a summary of cash collections and disbursements for the 4th quarter.
b.	Prepare a cash budget, when the company requires the balance in Cash account
	minimum $25,000 .