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In the preparation of a quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the

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In the preparation of a quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the information shown below. Sales were 2000000 in August and 2000000 in September. Sales have been forecasted to be 4000000, 3000000, 5000000, for months of October, November, December respectively. The firm collects 70 percent of sales for cash and 30 percent of its sales one month later. Interest income of 60000 dollars on marketable securities will be received in December Purchases are 50 percent of sales, 40 percent of which are paid in cash, and the rest is paid one month after purchase. Salaries and wages amount to 15 percent of the previous month's sales. Lease payments of $100,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of $150,000. The firm pays dividends of 200000 dollars in November Fixed assets costing $600,000 will be purchased in October. Depreco CICE month of Depreciation expense each month of $45,000 The firm has a beginning cash balance in October of $100,000 and maintains a minimum cash balance of $200,000. What is the total cash receipts in October? What is the total cash receipts in November? What is the total cash receipts in December? What is the total cash disbursements in October? What is the total cash disbursements in November? What is the total cash disbursements in December? What is the net cash flow in October? What is the net cash flow in November? What is the net cash flow in December? What is the ending cash balance in October? What is the ending cash balance in November? What is the ending cash balance in December? What is the cash balance to be invested in Marketable securities or to be financed in October? What is the cash balance to be invested in Marketable securities or to be financed in November What is the ending cash balance in November? What is the ending cash balance in December? What is the cash balance to be invested in Marketable securities or to be financed in October? What is the cash balance to be invested in Marketable securities or to be financed in November? What is the cash balance to be invested in Marketable securities or to be financed in December? Next page

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