Is my solution to this problem correct!?

Wizard Electronics Company's actual sales and purchases for April and May are shown here along with forecasted sales and purchases for June through September.

	Sales	Purchases
April (actual)	$320,000	$130,000
May (actual)	300,000	120,000
June (forecast)	275,000	120,000
July (forecast)	275,000	180,000
August (forecast)	290,000	200,000
September (forecast)	330,000	170,000

The company makes 10 percent of its sales for cash and 90 percent on credit. Of the credit sales, 20 percent are collected in the month after the sale and 80 percent are collected two months later. Wizard pays for 40 percent of its purchases in the month after purchase and 60 percent two months after.

Labor expense equals 10 percent of the current month's sales. Overhead expense equals $12,000 per month. Interest payments of $30,000 are due in June and September. A cash dividend of $50,000 is scheduled to be paid in June. Tax payments of $25,000 are due in June and September. There is a scheduled capital outlay of $300,000 in September.

Wizard Electronics's ending cash balance in May is $20,000. The minimum desired cash balance is $10,000. Prepare a schedule of monthly cash receipts, monthly cash payments, and a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is $50,000. Excess cash (above $50,000) is used to buy marketable securities. Marketable securities are sold before borrowing funds in case of a cash shortfall (less than $10,000).

Cash Receipts

April

May

June

July

August

September

Total sales:

$320,000

$300,000

$275,000

$275,000

$290,000

$330,000

Credit sales

288,000

270,000

247,500

247,500

261,000

297,000

Collections:

Cash sales

$32,000

$30,000

$27,500

$27,500

$29,000

$33,000

Credit collections (month after sale)

54,000

49,500

49,500

52,200

Credit collections (two month's after sale)

230,400

216,000

198,000

198,000

Total cash receipts

$311,900

$293,000

$276,500

$283,200

Cash Disbursements

Purchases:

$130,000

$120,000

$120,000

$180,000

$200,000

$170,000

Payments:

Payments one month after purchase

$48,000

$48,000

$72,000

$80,000

Payments two months after purchase

78,000

72,000

72,000

108,000

Labor expense

27,500

27,500

29,000

33,000

Overhead expense

12,000

12,000

12,000

12,000

Interest payments

30,000

30,000

Dividend payments

50,000

Tax payments

25,000

25,000

Capital outlay

300,000

Total payments

$270,500

$159,500

$185,000

$588,000

Net cash flow

Total cash receipts

$311,900

$293,000

$276,500

$283,200

Total cash payments

-270,500

-159,500

185,000

-588,000

Net cash flow

$41,400

$133,500

$91,500

-$304,800

Beginning cash balance

20,000

50,000

50,000

50,000

Cumulative cash balance

$61,400

$183,500

$141,500

-$254,800

Borrow

28,400

Repay loan

Sell marketable securities

236,400

Buy marketable securities

-11,400

-133,500

-91,500

Ending cash balance

$50,000

$50,000

$50,000

$10,000

Cumulative loan balance

$28,400

Cumulative marketable securities

$11,400

$144,900

$236,400

IS THIS CORRECT?