Cash BudgetBasic

Grenoble Enterprises had sales of 49,700 in March and $60,200 in April. Forecast sales for May, June, and July are $69,700,$79,600,

and $100,500,respectively. The firm has a cash balance of $5,300 on May 1 and wishes to maintain a minimum cash balance of

$5,300. Given the following data, prepare and interpret a cash budget for the months of May, June, and July.(1) The firm makes

15% of sales for cash,55% are collected in the next month, and the remaining 30% are collected in the second month following sale.

(2) The firm receives other income of $1,500 per month.

(3) The firm's actual or expected purchases, all made for cash, are $50,200, $70,400, and $79,500 for the months of May through July, respectively.

(4) Rent is $3,200 per month

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

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

(7) Payment of principal and interest of $4,200 is due in June.

(8) A cash purchase of equipment costing $5,900 is scheduled in July.

(9) Taxes of $5,600 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	$	49,700	$	60,200	$	69,700
Cash sales		7,455		9,030	$
Lag 1 month					$
Lag 2 months					$
Other income					$
Total cash receipts					$

(Round to the nearest dollar. Please input all the values in the table before checking your answers.)

	March		April		May
Disbursements
Purchases					$
Rent					$
Wages and salaries					$
Dividends					$
Principal and interest					$
Purchase of new equipment					$
Taxes due					$
Total cash disbursements					$

(Round to the nearest dollar. Please input all the values in the table before checking your answers.)

	March		April		May
Net cash flow					$
Add: Beginning cash					$
Ending cash					$
Minimum cash					$
Required total financing (notes payable)					$
Excess cash balance (marketable securities)					$

Complete the second 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.)

	April		May		June
Sales	$	60,200	$	69,700	$	79,600
Cash sales					$
Lag 1 month					$
Lag 2 months					$
Other income					$
Total cash receipts					$

(Round to the nearest dollar. Please input all the values in the table before checking your answers.)

	April		May		June
Disbursements
Purchases					$
Rent					$
Wages and salaries					$
Dividends					$
Principal and interest					$
Purchase of new equipment					$
Taxes due					$
Total cash disbursements					$

(Round to the nearest dollar. Please input all the values in the table before checking your answers.)

	April		May		June
Net cash flow					$
Add: Beginning cash					$
Ending cash					$
Minimum cash					$
Required total financing (notes payable)					$
Excess cash balance (marketable securities)					$

Complete the third 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.)

	May		June		July
Sales	$	69,700	$	79,600	$	100,500
Cash sales					$
Lag 1 month					$
Lag 2 months					$
Other income					$
Total cash receipts					$

(Round to the nearest dollar. Please input all the values in the table before checking your answers.)

	May		June		July
Disbursements
Purchases					$
Rent					$
Wages and salaries					$
Dividends					$
Principal and interest					$
Purchase of new equipment					$
Taxes due					$
Total cash disbursements					$