Grenoble Enterprises had sales of

$ 50 comma 000$50,000

in March and

$ 59 comma 800$59,800

in April. Forecast sales for May, June, and July are

$ 69 comma 600$69,600,

$ 79 comma 800$79,800,

and

$ 99 comma 900$99,900,

respectively. The firm has a cash balance of

$ 4 comma 800$4,800

on May 1 and wishes to maintain a minimum cash balance of

$ 4 comma 800$4,800.

Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

(1) The firm makes

16 %16%

of sales for cash,

60 %60%

are collected in the next month, and the remaining

24 %24%

are collected in the second month following sale.

(2) The firm receives other income of

$ 1 comma 900$1,900

per month.

(3) The firm's actual or expected purchases, all made for cash, are

$ 49 comma 800$49,800,

$ 69 comma 900$69,900,

and

$ 79 comma 900$79,900

for the months of May through July, respectively.

(4) Rent is

$ 2 comma 600$2,600

per month.

(5) Wages and salaries are

9 %9%

of the previous month's sales.

(6) Cash dividends of

$ 2 comma 500$2,500

will be paid in June.

(7) Payment of principal and interest of

$ 3 comma 500$3,500

is due in June.

(8) A cash purchase of equipment costing

$ 6 comma 200$6,200

is scheduled in July.

(9) Taxes of

$ 5 comma 500$5,500

are due in June.

Homework: Homework ch4 Save 8 of 8 (8 complete) Score: 0.33 of 1 pt P4-10 (similar to) HW Score: 90.55%, 7.24 of 8 pts Question Help O Cash budget-Basic Grenoble Enterprises had sales of $50,000 in March and 559,800 in April. Forecast sales for May, June, and July are 569,600, $79,800, and $99,900, respectively. The firm has a cash balance of $4.800 on May 1 and wishes to maintain a minimum cash balance of $4,800. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 16% of sales for cash, 60% are collected in the next month, and the remaining 24% are collected in the second month following sale. (2) The firm receives other income of $1,900 per month. (3) The firm's actual or expected purchases, all made for cash, are 549,800, $69,900, and $79,900 for the months of May through July, respectively. (4) Rent is $2,000 per month. (5) Wages and salaries are 9% of the previous month's sales. (6) Cash dividends of $2,500 will be paid in June. (7) Payment of principal and interest of $3,500 is due in June. (8) A cash purchase of equipment costing 56,200 is scheduled in July, (9) Taxes of $5,500 are due in June. Principal and interest $ (3,500) Purchase of new equipment 0 Taxes due (5.500) Total cash disbursements $ (90,264) (Round to the nearest dollar. Please input all the values in the table before checking your answers.) April May June $ (19484) Net cash flow Add: Beginning cash Ending cash Minimum cash Required total financing (noles payable) Excess cash balance (marketable securities) Enter any number in the edit fields and then click Check Answer. A parts 4 remaining Clear All Check Answer Check