Budget of Nashville Nougats, Inc for the second quarter of 2015

April May June

Credit Sales $374,400 $349,500 $420,500

Credit Purchases 148,900 169,300 200,300

Cash Disbursements

Wages, taxes, an expenses 54,340 70,300 75,170

Interest 12,580 12,580 12,580

Equipment purchases 88,800 135,00 0

The company predicts that 5 percent of its credit sales will be collected, 35 percent of its sales will be collected in the month of the sales, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2015, credit sales were $235,000 and credit purchases were $161,000. Using this information, complete the following cash budget.

April May June

Beginning cash balance$135,000

Cash receipts

Cash collections from credit sales

Total cash available

Cash disbursements

Wages, taxes, and expenses

Interest

Equipment purchases

Total cash disbursements

Ending cash balance