Here is the format that will help you in answering the questions. It is a 3 month budget - sales are expected to be $100,000 each month (provided). It is suggested to use the sales information provided and the information below to create the actual cash budget (include this in your answer!).

• Monthly purchases are expected to be 60% of sales and remember they cost money.
• Wages are a $15,000 per month.
• $20,000 of taxes are to be paid in month one.
• There is a new fixed asset being purchased in month 2 for $15,000.
• An additional asset was sold in month 3 bringing in $8,000 of cash.

a. what is the purchase in 1st month?

b. what is the sales in 1st month?

c. what is the beginning cash?

d. what is the wage in 2nd month?

e. what is the ending cash?