Explain the role of cash budget.
2.2 Using the below information, complete the following cash budget. Assume that all credit purchases are paid one month after the purchase.

	October	November	December
Beginning cash balance
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
Payments for purchases
Wages, taxes, and other expenses
Interest and dividend payments
Capital expenditures
Total cash disbursements
Ending cash balance

 

Here are the relevant estimates for the budget preparation of Michel Corporation for the fourth quarter of 2022: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment Credit sales collections Collected in month of sale Collected month after sale Never collected September credit sales September credit purchases Beginning cash balance October 1 416 138 849 683 386 946 35 581 0 34% 65% 1% 1 259 872 755 923 461 153 November 1 646 685 988 078 439 138 33 189 176 379 December 1 216 893 730 136 374 237 33 189 106 893