find cash budget

The following data relate to the operations of Medco Company, a wholesale distributor of consumer goods: As of March 31 (USD): Cash 20,500 Accounts payable 45,600 Accounts receivable 12,000 Capital stock 40,000 Inventory 11,800 Retained earnings 71,644 Buildings and equipment (net) 140,000 Assumptions a) Gross margin is of sales 60% b) Actual and budgeted sales data: JUSD March (actual) June 94,000 April 82,000 July 90,000 May 83,000 c) Sales are for cash and on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. Break down between Cash & Credit sales is Jas follow: Cash Sale 40% Credit Sales Each month's ending inventory should equal 30% of the following month's budgeted cost of goods sold. 30% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory. Monthly expenses are as follows: salaries and wages, $10,500 per month; rent, $4,600 per month; other expenses (excluding depreciation), 5% of sales. Assume that these expenses are paid monthly. Depreciation is $1,000 per month (includes depreciation on new assets). Equipment costing $9,000 will be purchased for cash in April. The company must maintain a minimum cash balance of $5,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 15%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth)