Here are some important figures from the budget of Marvin Corporation for the first quarter of 2020:

Additional information:

• The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month.
• Credit purchases will be paid in the month following the purchase.
• In December 2019, credit sales were 210,000 and credit purchases were 156,000.
• Cash balance at 1 January 2020 is 280,000.

Instructions:

a) Using the above information, complete the following cash budget. (15 points)

SHOW CALCULATIONS PLEASE, THANK YOU

January February March Credit sales 380,000 396,000 438,000 Credit purchases 147,000 175,500 200,500 Cash disbursements: Wages, taxes, and expenses 39,750 48,210 50,300 Interest 11,400 11,400 11,400 Equipment purchases 83,000 91,000 0 January February March Beginning cash balance Cash receipts: Cash collections from credit sales Total cash available Cash disbursements: Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance