FMP

Mandeville Company's sales forecast for the first four months of 2022 are as follows: Month January February March April Sales (\$) 40,00045,00052,00048,000 Additional information provided is as follows: (i) Sales for December 2019 were $50,000. (ii) Seventy-five percent (70\%) of sales will be for cash, while the remaining 20% will be collected in the first month following the sale. (iii) Raw material is purchased each month at 60% of the current month's sales. The supplier is paid a month after delivery. For example, purchases for January are based on expected sales for January and payment is made a month after in February. (iv) Wages is $6,500 per month. (v) Other expense is $4,500 each month. (vi) Mandeville Co ordered equipment costing $15,800 in January. A 40% deposit will be made at ordering and the balance paid a month later. (vii) Taxes will be paid on March 31: \$7,250 (viii) Mandeville Company's cash balance on 31 December 2018 was $10,000; and will be the minimum balance applied going forward. (ix) Short-term credit is arranged at an interest rate of 12 percent per annum ( 1 percent per month) to be paid monthly. The interest on any short-term borrowing is paid in the month after it is incurred. Required: Use the information above to prepare the cash budget for Mandeville Company covering January to April 2022