C) Prepare a cash budget

Allan Corporation has a sales budget for March of $440,000. About 10 percent are cash sales, and the remainder is sold on account. The company expects that 60 percent of credit sales will be collected in the month of the sale, 25 percent in the next month, and 10 percent in the following month. Utilities average $4,300 per month. Rent on the building is $9,000 per month. Insurance is $3,000 per month, and advertising costs are $1,000 per month. The cash balance on March 1 is $5,400. Required: A. Prepare a schedule of cash receipts. Allan Corporation Schedule of Cash Receipts B. Prepare a schedule of cash payments (Accounts payable payments). Allan Corporation Schedule of Cash Payments