Case 6: Cash Budget 1. :ornrrlo Golden Diamond Jeweler Inc is currently forecasting a revenue of $2,000,000, $3,200,000 and $1,200,000 for the months of October, November, and December respectively. Sales of the month of September is $1,300,000. The business currently have a cash balance of $500,000 at the end of September and the company requires $800,000 as its minimum cash requirement. Given the additional information below, prepare a cash budget for the months of October, November, and December 50% of the company's revenue is usually paid in cash and 50% is paid through credit card where credit card companies usually pay the following month. Additional income of $200,000 per month is receive from cleaning services of jewelries. Companies purchases on credit per month are $300,000 for September: $200,000 for October: $500,000 for November and $700,000 on December which are all paid the following month of purchase. . Salaries and wages would usually average to $80,000 per month Costs of sales is usually 30% of menthly sales Operating expense is usually 10% of monthly sales . Loans payment per month is $100,000 It is expected that repairs and maintenance expense of $10,000 will be incurred every month The cempany expects to purchase new equipment worth $100,000 on November Tax of $200,000 will be paid on December The cempany is also to pay a total of $100,000 for employees end year bonus On December. A total of $300,000 is to be paid as dividends to preferred stockholders on December