Cash Budget

Sales for Gilmore Corp are as follows: February $120,000, March $150,000, April $175,000, May $180,000, andJune $190,000. Cash sales are 40% and Credit 60%. Theycollect 10% in the month ofthe sale, 70% in the month following the sale andthe remaining 20% 2 months following the sale. Gilmore purchases their raw materials in the month ofthe sale and pays for them the next month They are equal to 60% of sales. Other expenditures are $12,000 a month for rent, other expenses of $5,000 per month. The company plans a capital expenditure in May of $50,000. They plan to partially finance this with a bank loan of $25,000, Quarterly tax payments are made starting in March for $8,000. They have a balloon loan payment due in June for $100,000. Prepare a cash budget for April through June with a beginning cash balance of $1 0,500