Cash Budget

All Eyes Security Services Company provides security-monitoring services. It employs four security specialists. Each specialist works an average of 180 hours a moth. The companys controller has complied the information that follows.

Actual Data for Last Year Forecasted Data for current Year

November December January February March

Security Billing (sales) $30,000 $35,000 $25,000 $20,000 $30,000

Selling & admin. Expenses 10,000 11,000 9,000 8000 10,500

Operating supplies 2,500 2500 2500 2000 3000

Service overhead 3,000 3500 3000 2500 3000

Sixty percent of the client billing are cash sales collected during the month of sales, 30 percent are collected in the first month following the sale, and 10 percent are collected in the second month following the sale. Operating supplies are paid for in the month of purchase. Selling and administrative expenses and service overhead are paid in the month following the costs incurrence.

The company has a bank loan of $12,000 at a 12 percent annual interest rate. Interest is paid monthly and $2000 of the loan principal is due on February 28. Income taxes of $2,500 for the last calendar year are due and payable on March 15. The four security specialists each earn $15 an hour, and all payroll-related employee benefit costs are included in service overhead. The Company anticipates no capital expenditures for the first quarter of the coming year. It expects its cash balance on December 31 to be $15,000.

Prepare a monthly cash budget for All Eyes for the three-moth ended March 31. Show your work