CASH BUDGET
Total Sales:	cash	40%
	credit	60%
December Sales	400,000
January Sales	460,000
February Sales	380,000
March Sales	420,000

Credit sales collections:

30% taking 2% disount; all in month of sale

40% month of sale

28% in month following sale

2% uncollectible

Purchases on account (no cash purchases)
December	150,000
January	170,000
February	130,000
March	190,000

Cash disbursements (payments) schedule related to accounts payable. The company pays for 40% of each months purchases in month of purchase, taking 2% cash disc. Remaning 60% of each month purchase paid in month following month of purchase. No disc available for these payments.

Monthly cash payments, Variable selling, general and administrative and direct labor equal 30% of given month sales. Annual fixed costs are budgeted at 1,200,000 including 200,000 in depreciation and 100,000 in depletion expenses. Fixed costs are spread and paid evenly over 12 months.

Required:

1. Schedule cash collections and Payments per month for January, February and March.

2. what will be baancel of cash accounts at January 31, February 28 and March 31 if the cash balance at the end of December is 100,000?