Here are the relevant estimates for the budget preparation of Beta Corporation for the fourth quarter of 2023:

	October	November	December
Credit sales	1 403 380	1 631 850	1 205 930
Credit purchases	842 028	979 176	723 558
Cash disbursements:
Wages, taxes, and expenses	383 460	435 182	370 865
Interest	32 890	32 890	32 890
Equipment	0	174 790	105 930
Credit sales collections:
Collected in month of sale	35%
Collected month after sale	62%
Never collected	3%
September credit sales	1 248 522
September credit purchases	749 113
Beginning cash balance	572 157

Assume that all credit purchases are paid one month after the purchase.

Instructions:

1. Explain the role of cash budget.

2. Using the above information, complete the following cash budget.

	October	November	December
Beginning cash balance
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
Payments for purchases
Wages, taxes, and other expenses
Interest and dividend payments
Capital expenditures
Total cash disbursements
Ending cash balance