Directions: Please answer the following questions on a separate piece of paper. Where
appropriate, use the data in the following tables to answer the questions which reference
them. SHOW ALL WORK!!!
Table 6-1: Actual Sales Data
Time Period	Actual Sales
1	345
2	378
3	425
4	450
5	470
6	500
7	532
8	548
9	590
10	625
11	650
Table 6-2
Time Period	Actual Sales	3-Month Moving Average	Absolute Deviation	Weighted Moving Average W=.1,.3,.6	Absolute Deviation	Exponential Smoothing	Absolute Deviation
1	230					F(t)=350
2	238					326
3	260					308
4	275	243		250		299
5	300	258		267		294
6	285	278		289		295
7	270	287		278		293
8	290	285		284		289
9	305	282		297		289
10	320	288		313		292
11	335	305		328		298
12		320				305

7. Of its monthly sales, the Kingsman Company historically has had 25% cash sales with the
remainder paid within one month. Each month's purchases are equal to 75% of the next
month's sales forecast; suppliers are paid one month after the purchase. Salary expenses
are $50,000 a month, except in January when bonuses equal to 1 percent of the previous
year's sales are paid out. Interest (on a bond issue) of $10,000 is due in March. Overhead
and utilities are expected to be $25,000 monthly. Dividends of $45,000 are to be paid in
March. Kingsman's 1999 sales totaled $2 million; December sales were $200,000.
Kingsman's estimated sales for January are $100,000; February, $200,000; March, $250,000;
and April,$300,000.		Assume that the ending December cash balance was $50,000, and
that the company desires to keep a minimum cash balance of $40,000.
For the Kingsman Company, determine in tabular form (see page 141 in your text for an
example) the cash budget for January, February, March, and April.