Calculate the cash budget for the months of October, November, and December

Styles In preparation for the quarterly cash budget, the following revenue and cost information has been compiled. Prepare a cash budget for the months of October, November and December based on the information shown below and calculate each month's ending cash balance that is in excess of the minimum required. Sales ($) Purchases ($) August (actual) 3,000,000 3,500,000 September (actual) 4,500,000 2,000,000 October (forecast) 1,000,000 500,000 November (forecast) 1,500,000 750,000 December (forecast) 2,000,000 1,000,000 The firms collects 60% of sales for cash and 40% of sales on month later Interest income of $50,000 on marketable securities will be received in December The firm pays cash for 40% of its purchases and pays 60% of its purchases the following month > Salaries and wages amount to 15% of the preceding month's sales > Sales commissions amount to 2% of the preceding month's sales Lease payments of $100,000 must be made each month A principle and interest payment on an outstanding loan is due in December of $150,000 The firm pays dividends of $50,000 at the end of each quarter Fixed assets costing $600,000 will be purchased in December Depreciation Expense each month is $45,000 > The firm has a beginning cash balance of $100,000 on October 1st and must maintain a minimum cash balance of $200,000