Cash

budgetlong dashBasic

Grenoble Enterprises had sales of

$ 49 comma 600$49,600

in March and

$ 60 comma 000$60,000

in April. Forecast sales for May, June, and July are

$ 69 comma 900$69,900,

$ 79 comma 600$79,600,

and

$ 100 comma 300$100,300,

respectively. The firm has a cash balance of

$ 4 comma 500$4,500

on May 1 and wishes to maintain a minimum cash balance of

$ 4 comma 500$4,500.

Given the following data, prepare and interpret a cash budget for the months of May, June, and July.(1) The firm makes

21 %21%

of sales for cash,

62 %62%

are collected in the next month, and the remaining

17 %17%

are collected in the second month following sale.(2) The firm receives other income of

$ 2 comma 400$2,400

per month.(3) The firm's actual or expected purchases, all made for cash, are

$ 49 comma 700$49,700,

$ 69 comma 700$69,700,

and

$ 80 comma 500$80,500

for the months of May through July, respectively.(4) Rent is

$ 3 comma 200$3,200

per month.(5) Wages and salaries are

8 %8%

of the previous month's sales.(6) Cash dividends of

$ 2 comma 900$2,900

will be paid in June.(7) Payment of principal and interest of

$ 4 comma 200$4,200

is due in June.(8) A cash purchase of equipment costing

$ 6 comma 000$6,000

is scheduled in July.(9) Taxes of

$ 6 comma 200$6,200

are due in June.

Complete the first month of the cash budget for Grenoble Enterprises below:(Round to the nearest dollar. Please input all the values in the table before checking your answers.)

	March		April		May
Sales	$	49,600	$	60,000	$	69,900
Cash sales		10,416		12,600	$
Lag 1 month					$
Lag 2 months					$
Other income					$
Total cash receipts					$