Hello,

I am currently in need of assistance in terms of answering this managerial accounting problem. The question is below, and thank you for your time and help!

Review Corp has the following information relating to their annual cash budget: Nov 120,000 90,000 Dec 120,000 90,000 Jan 140,000 105,000 Sales Expenses Taxes Dividends Feb 160,000 120,000 25,000 March 170,000 127,500 20,000 Collections 60% of sales are expected to be cash sales 1 25% of sales are expected to be credit sales and collected in the month after sale 15% of sales are expected to be credit sales and collected in the second month after sale Payments 3 40% of selling and administrative expenses are expected to be paid in the month of the expense 60% of selling and administrative expenses are expected to be paid in the month after the expense The cash balance on January 1 is $40,000 Required Complete the following chart by calculating cash collections, cash payments and the ending cash balance for January, February and March. January February March Begin Cash 40,000 Collections Payments Ending Cash