Instructions: Using the following information for the Allied Company, prepare a Cash Budget for July, August, and September.

		July	August	September
Credit sales		1,275,800	1,483,500	1,096,300
Credit inventory purchases		765,480	890,160	657,780
Cash disbursements:
Wages and salaries		348,600	395,620	337,150
Rent		40,000	40,000	40,000
Utilities		14,500	17,800	19,800
Credit sales collections:
Collected in month of sale	35%
Collected in month after sale	65%
June credit sales	1,135,020
June credit inventory purchases	681,012
Beginning cash balance (July 1)	425,000

All credit inventory purchases are paid in the month after purchase.

Allied Company Cash Budget Cash receipts: Cash disbursements: Total cash disbursements Ending cash balance 32