Cash budgetBasic

Grenoble Enterprises had sales of $50,100 in March and $60,100 in April. Forecast sales for May, June, and July are $69,500, $80,000, and $99,800,

respectively. The firm has a cash balance of $4,800 on May 1 and wishes to maintain a minimum cash balance of $4,800. Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

(1) The firm makes 24% of sales for cash, 62% are collected in the next month, and the remaining 14% are collected in the second month following sale.

(2) The firm receives other income of $1,800 per month.

(3) The firm's actual or expected purchases, all made for cash, are $50,500, $70,300, and $80,300 for the months of May through July, respectively.

(4) Rent is $2,800 per month.

(5) Wages and salaries are 9% of the previous month's sales.

(6) Cash dividends of $3,100 will be paid in June.

(7) Payment of principal and interest of $4,300 is due in June.

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

(9) Taxes of $6,300 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	$	60,100	$	69,500
Cash sales		12,024		14,424	$
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					$	0
Principal and interest					$	0
Purchase of new equipment					$	0
Taxes due					$	0
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)					$	0
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	$	60,100	$	69,500	$	80,000
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					$	0
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)					$	0