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How do I solve the 55% and 10% part of this problem? PROBLEM 2: Loblaw Manufacturing has asked you to create a cash budget in

How do I solve the 55% and 10% part of this problem? image text in transcribed

PROBLEM 2: Loblaw Manufacturing has asked you to create a cash budget in order to determine its borrowing needs for the June to October period. You have gathered the following information. Month June July August Sales 172,000 142,000 121,000 September 93,000 October 76,000 November 81,000 Other Payments 80,000 75,000 70,000 50,000 45,000 April and May sales were $115,000 and $135,000, respectively. The firm collects 35% of its sales during the month, 55% the following month, and 10% two months after the sale. Each month it purchases inventory equal to 60% of the next month's expected sales. The company pays for 40% of its inventory purchases in the same month and 60% in the following month. The firm ended May with a $30,000 cash balance. Create a cash budget for June to October 2020.

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