Delphi Enterprises is developing a cash budget for April, May and June 20x3.

Cash receipts

(1) The firms sales in February and March 20x3 are $100,000 and $120,000 respectively. Sales of $110,000, 120,000 and $90,000 have been forecasted for April, May and June 20x3 respectively.

(2) Historically, 20% of the firms sales are cash, 60% are collected in the next month; and the remaining 20% are collected in the second month following the sale.

(3) The firm receives rent income of $2,000 per month.

Cash payments

(1) The firms expected purchases are $50,000, $70,000 and $80,000 for the months of April, May and June 20x3 respectively. The firm pays all its purchases in the month of purchase.(2) Salary is $15,000 per month while commission is based on 5% of the previous months sales.

(3) A cash purchase of equipment costing $99,000 is scheduled in June 20x3.

Additional information

The firm has a cash balance of $5,000 on 1 April 20x3 and wishes to maintain a minimum cash balance of $5,000.

Required:

Prepare the following for Delphi Enterprises for the months of April, May and June 20x3:

1. Projected cash receipts

2. Projected cash disbursements
3. Cash budget i) Projected Cash Receipts

Receipts	Feb $	Mar $	Apr $	May $	Jun $
Sales	100,000	120,000	110,000	120,000	90,000
Cash Sales (20%)
Lag 1 month (60%)
Lag 2 months (20%)
Total Cash Receipts

ii) Projected Cash Disbursements

Disbursements	Apr $	May $	Jun $
Cash Purchases
Total Cash Disbursements

iii) Cash Budget

	Apr $	May $	Jun $
Total Cash Receipts
Less: Total Cash Disbursements
Net Cash Flow
Add: Beginning Cash Balance
Ending Cash Balance
Less: Minimum Cash Balance
Required Financing
Excess Cash Balance