Jensen Corporation needs help with some budgeting. They have the following information available:

Beginning Cash Balance: $4,000

Beginning Inventory: 10,000

Sales Price Per Unit: $2.50

Cost Per Unit: $1.00 (paid in month of purchase)

Other Monthly Expenses: $8,400

% of Sales in Cash: 60%

% of Sales on Credit: 40% (collected in month following the sale)

December Sales: 12,000 units

Jensen wants to use level production over the first six months of the year: Production is estimated as follows:

	Jan	Feb	March	April	May	June
Units Sold	14,000	9,500	6,000	7,000	4,000	3,000

Required

Prepare a budget for ending inventory (begin + purchases sales).

Prepare a cash receipts budget.

Prepare a cash payments budget.

Calculate the budgeted ending cash for each month.