1. Healthy Foods Market had sales of $125,000 in March. and Forecast sales for April is expected to be 130,000. The firm has a cash balance of $5,000 on April 1 and wishes to maintain a minimum cash balance of $25,000.

1. The firm makes 70% of sales for cash, 30% are collected in the next month.
2. The firms actual for March is $75,000 and the expected purchases for April is $80,000, 50% made for cash and 50% paid in the next month.
3. Rent is $10,000 per month.
4. Wages and salaries are 45% of the previous months sales.
5. Cash dividends of $5,000 will be paid in April.
6. Payment of principal and interest of $4,000 is paid monthly.
7. A cash purchase of equipment costing $10,000 is scheduled in April.
8. Taxes of $2,000 are due in April.

Requirement:

Given the above data, prepare and interpret a cash budget for the month of April.