Cash budgetBasic

Grenoble Enterprises had sales of $ 50,100 in March and $ 60,300

in April. Forecast sales for May, June, and July are $ 70,000

$ 79, 700, $79,700 ,and $ 99,900 respectively. The firm has a cash balance of

$5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000.

Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (

1) The firm makes 22 % of sales for cash, 58 % are collected in the next month, and the remaining

20 % are collected in the second month following sale. (

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

(3) The firm's actual or expected purchases, all made for cash, are $50,500 , $70,500 ,

and $80,400 for the months of May through July, respectively.

(4) Rent is $3,400 per month.

(5) Wages and salaries are 11 % of the previous month's sales.

(6) Cash dividends of $2,600 will be paid in June.

(7) Payment of principal and interest of $3,500 is due in June.

(8) A cash purchase of equipment costing $5,500is 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	$	50,100	$	60,300	$	70,000
Cash sales		11,022		13,266	$
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	$	60,300	$	70,000	$	79,700
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.) PLEASE DO JULY ALSO

The firm should establish a credit line of at least $? but may need to secure three to four times this amount based on scenario analysis. (Round to the nearest dollar.)