Eddie's Bar and Restaurant Supplies expects its revenues and payments

for the first part of the year to be:

Sales Payments

January P14,000 18,000

February 20,000 21,300

March 26,000 19,100

April 22,000 22,400

May 18,000 14,700

Seventy percent of the firm's sales on credit. Past experience shows that 40% of

accounts receivable are collected in the month after sale, and the remainder are

collected in the second month after sale. Prepare schedule of cash receipts for

March, April, and May. Eddie pays its payments in the following month. Eddie had a

cash balance of P2,000 on March 1, which is also its minimum required balance. There

is an outstanding loan of P2,000 on March 1. Prepare cash budget for March, April

and May.