Cash Budget

$1.$ Projected Cash Receipts

Ramis Brothers Inc. needs a cash receipts schedule for the months of April, May, and June.

Actual Sales: February $=$ $$500,000,$ March $=$ $$500,000.$

Forecast Sales: April $=$$$560,000,$ May$=$ $$610,000,$ June$=$ $$650,000,$ July$=$ $$650,000$

Assuming that sales are the only source of cash inflows and that $30\%$ of them are for cash and the remainder are collected evenly over the following $2$ months.

Prepare a schedule of projected cash receipts for April, May and June. Use the format of Table $4\mathrm{.}8$

$2.$ Projected Cash Disbursements

Romis Brothers Inc. needs a cash disbursement schedule for the months of April, May, and June. The following information was collected from financial records:

Purchases: Purchases are calculated as $50\%$ of the next month$$s sales, $15\%$ of purchases are made in cash, $60\%$ of purchases are paid for $1$ month after purchase, and the remaining $25\%$ of purchases are paid for $2$ months after purchase.

Rent: The firm pays rent of $$9,000$ per month.

Wages and salaries: Base wage and salary costs are fixed at $$8,500$ per month plus a variable cost of $5\mathrm{.}5\%$ of the current month$$s sales.

Taxes: A tax payment of $$45,600$ is due in June.

Fixed asset outlays: New equipment costing $$61,000$ will be bought and paid for in May.

Principal payments: $$35,000$ due in June.

Interest payments: $$3,000$ due in June.

Cash dividends: $$9,500$ will be paid in April.

Prepare a schedule of projected cash disbursements for April, May and June. Use the format of Table $4\mathrm{.}9$

$3.$ Net Cash Flows

Prepare a schedule to compute de Net Cash Flows for April, May and June of Romis Brothers Inc.