Floribama Clothing has generated $130,000 in sales during the past few months, and it is expected that this level of sales will continue for the next year. Based on past experience, 40% of the sales will be collected in the month of the sale, and these customers will take the 3% cash discount that is offered for early payment. The remaining 60% of the sales will be collected one month after the sale. Floribama normally purchases and pays for raw materials, which cost 70% of the sales prices, in the same month the finished goods are sold. Employees wages represent 15% of the sales price, and monthly rent is $15,000. The company currently has no cash, but its target cash balance is $6,000. Construct Florbamas cash budget for the next three months.

a) Cash receipts in Month 2 are:

b) Cash disbursements in Month 1 are:

c) Surplus(Shortfall) in Month 2 are: