Cash Budget: Basic Grenoble Enterprises Had Sales Of $50,000 In March And $60,000 In April. Forecast Sales For May, June, And July Are $70,000, $80,000, And $100,000, Respectively. The Firm Has A Cash Balance Of $5,000 On May 1 And Wishes To Maintain A Minimum Cash Balance Of $5,000. Given The Following Data, Prepare And Interpret A Cash Budget For The

 

 

LG 4 P4-9 Cash budget: Basic Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale.