Cash budget$-$Basic Grenoble Enterprises had sales of $$50,000$ in March and $$60,200$ in April. Forecast sales for May, June, and July are $$69,700,$$$80,300,$ and $$99,600,$ respectively. The firm has a cash balance of $$5,200$ on May $1$ and wishes to maintain a minimum cash balance of $$5,200.$ Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

$(1)$ The firm makes $21\%$ of sales for cash, $65\%$ are collected in the next month, and the remaining $14\%$ are collected in the second month following sale.

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

The firm's actual or expected purchases, all made for cash, are $$49,600,$$$69,600,$ and $$80,200$ for the months of May through July, respectively.

Rent is $$2,900$ per month.

Wages and salaries are $8\%$ of the previous month's sales.

Cash dividends of $$2,900$ will be paid in June.

Payment of principal and interest of $$3,600$ is due in June.

A cash purchase of equipment costing $$6,300$ is scheduled in July.

Taxes of $$5,800$ are due in June.

Sales

Cash sales

$\backslash$table$[[50,000$$$,60,200$$$,69,700],[10,500,12,642$$$,],[,$$$,],[5,$$$,],[,$$$,]]$

Total cash receipts

Get more help