During the COVID-19 crisis Josh lost his job and decided to start a pop-up business selling

portable camping stoves when the social distancing restrictions were lifted as a way to generate

cash until had could get his old job back. The stoves cost Josh $48 and he sells them for $68.

If his customers pay cash, which accounts for about 35% of sales, he gives them a 10% discount.

Internet and credit card payments attract a 5% discount. These also make up about 35% of sales.

12% of credit customers normally pay in the month following the month of sale, with a further 8 %

two months following , 6% in the three months following and the remaining 4% are uncollectable.

He estimates that sales will grow as restrictions are lifted on the following basis:

May 130 stoves

June 240 stoves

July 330 stoves

August 410 stoves

September Back in his old job

Josh has negotiated with his supplier that he can pay for any purchases over a two-month period

with 50% of the price paid in the month of purchase and the remainder the following month. As an

incentive the supplier has offered a 5% discount for payments made promptly in the month of

purchase. As Josh is just starting up his business in May he has cash flow issues and won't be

able to make any payments until June when the full invoice will be settled.

He bought 50 stoves in April as his opening inventory, which will need to be paid for in May, and

he would like to have enough inventory at the end of each month to supply 60% of the following

month's sales.

Required

Need a schedule of the monthly cash receipts budgets and a schedule of the monthly

cash payments budgets to cover all of the months affected by these projected sales. Round

to the nearest dollar.

Will Josh need extra cash funds for any purchases if there are insufficient generated by

sales?