could u explain to me cash disburtments

I want you to complete a cash budget. The excel template has been included in the Financial planning module. Use the following assumptions: 1) Sales projection are provided 2) Assume that you purchase 100% ofthe sales that will occur in 2 months from now. In January we purchase enough to cover March sales. 3) Use the following assumptions for collections (20% one month after sales, 50% second month after sales, 30% third month after sales} 4)Tota| Cash receipts 5) Payments assume they are made one month after purchases 6) Assume wages are 10% of sales i') Assume rent is constant at $5,000 per month 8) Taxes Assume 5,000 is due on Apn'l, June and Sept 9) Interest Assume it is 6% APR (you will use 6%l12} of the prior months cummulatiye borrowing. 10} Assume you need to have $15,000 cash on hand at the end of each month. 11} Assume you start with a $30,000 cash balance on hand. You will be graded as follows. Completing budget for JANUARY through JUNE 4pts Correct Purchase numbers 1 pt Correct Total Cash receipts 1pt Correct Total Payments 1 pt Correct Wages and Salary 1 pt Correct Interest 1 pt Correct Cummulatiye Borrowing 1 pt AutoSave CashFlowProject (2) - Search File Home Insert Page Layout Formulas Data Review View Help X Cut Calibri * 11 ~ A" A" ab Wrap Text General Normal Bad Good Paste [ Copy Conditional Format as Calculation Check Cell Explanatory ... Format Painter SEE Merge & Center * Formatting Table * Clipboard Font Alignment Number Styles AZ X V B C D E H K M A W N - Melco Furniture, Inc., Cash Budget for the Six Months October November December January February March April May June July August 5 Worksheet 6 Sales (forecast) $ 30,000 $ 45,000 $ 50,000 $ 55,000 $ 62,000 $ 70,000 $ 100,000 $ 125,000 $ 150,000 $ 100,000 $ 75,000 Purchase (100% of sales in 2 7 months) 8 9 Cash receipts 10 Collections: 11 First month after sale (20%) 12 Second month after sale (50%) 13 Thrid month after sale (30%) 14 Total cash receipts 15 16 Cash Disbursements Payments (1-month lag of purchases made the previous 17 month) Wages and salaries 10% of sales for 18 month 19 Rent $5,000 per month Taxes ($5,000 Due April, June, 20 Sept 21 Total cash disbursements 22 23 Net change in cash for the period 24 Plus: Beginning cash balance 30,000 Less: Interest on short-term borrowing 6% of prior months 25 balance Equals: Ending cash balance before 26 short-term borrowing 27 28 New financing needed Ending cash balance Always have 79 515.000 on hand