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.

(2) The firm receives other income of $2,000 per month.

(3) The firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and $80,000 for the months of May through July, respectively.

(4) Rent is $3,000 per month.

(5) Wages and salaries are 10% of the previous month's sales.

(6) Cash dividends of $3,000 will be paid in June.

(7) Payment of principal and interest of $4,000 is due in June.

(8) A cash purchase of equipment costing $6,000 is scheduled in July.

(9) Taxes of $6,000 are due in June.

Complete the first month of the cash budget for generoble enterprises below:

(2) The firm receives other income of 52.000 per month 3) The first or expected porches, al made for coat, are 550.000. 570.000 a $80.000 for the month of May through July, respectively 14 Rent is $3,000 per month 15) Wages and sales are 10% of the previous month a) Casa Minds of $3.000 will be pleine Payment of principal and test 54.000 donne A cash purchase of equipment conting $6.000 la scheduled 9 Taves of 56.000 ron Compute the first month of the cash budget for Grence Enterprises below. Round to the rearest ootar. Please not all the values in the table betere checking your answer $ May 70,000 50.000 10 000 Sales Cash sale Last month Lago Omeroon Total cases Apr 00.000 12.000 3 5 $