Cash budget-Basic Grenoble Enterprises had sales of $49,900 in March and $59,800 in April. Forecast sales for May, June, and July are $69,900, $80,200, and $99,700, respectively. The firm has a cash balance of $5,500 on May 1 and wishes to maintain a minimum cash balance of $5,500. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 18% of sales for cash, 56% are collected in the next month, and the remaining 26% are collected in the second month following sale. (2) The firm receives other income of $1,700 per month. (3) The firm's actual or expected purchases, all made for cash, are $49,500, $69,500, and $80,500 for the months of May through July, respectively. (4) Rent is $2,700 per month. (5) Wages and salaries are 12% of the previous month's sales. (6) Cash dividends of $3,100 will be paid in June. (7) Payment of principal and interest of $4,400 is due in June. (8) A cash purchase of equipment costing $6,100 is scheduled in July (9) Taxes of $6,100 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 49,900 $ 8,982 $ April 59,800 $ 10,764 $ May 69,900 Sales Cash sales Lag 1 month Lag 2 months Enter any number in the edit fields and then click Check Answer. 9 parts y remaining Clear All Check Answer P4-10 (similar to) Question Help Cash budget-Basic Grenoble Enterprises had sales of $49,900 in March and $59,800 in April. Forecast sales for May, June, and July are $69,900, $80,200, and $99,700, respectively. The firm has a cash balance of $5,500 on May 1 and wishes to maintain a minimum cash balance of $5,500. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 18% of sales for cash, 56% are collected in the next month, and the remaining 26% are collected in the second month following sale. (2) The firm receives other income of $1,700 per month. (3) The firm's actual or expected purchases, all made for cash, are $49,500, $69,500, and $80,500 for the months of May through July, respectively. (4) Rent is $2,700 per month (5) Wages and salaries are 12% of the previous month's sales. (6) Cash dividends of $3,100 will be paid in June. (7) Payment of principal and interest of $4,400 is due in June. (8) A cash purchase of equipment costing $6,100 is scheduled in July (9) Taxes of $6,100 are due in June. $ 69,900 49,900 $ 8,982 59,800 $ 10,764 $ Sales Cash sales Lag 1 month Lag 2 months Other income Total cash receipts Enter any number in the edit fields and then click Check Answer. 9 parts Clear All Check Answer remaining