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Madden Company provided the following sales information for the month of May: April Actual May Budget Cash sales $ 17,550.00 $ 18,000.00 Credit sales 99,000.00

Madden Company provided the following sales information for the month of May:

April Actual May Budget
Cash sales $ 17,550.00 $ 18,000.00
Credit sales 99,000.00 126,000.00
Total sales $116,550.00 $144,000.00

For credit sales, the collection pattern is as follows:

Month of sales 70%

Month following sales 25%

Based on past experience, the company estimates the remaining credit sales are uncollectible.

Inventory purchases average 70% of the same month's total sales.

Payments for inventory are made as follows:

Month of purchase 40%

Month following purchase 60%

other expenses as follows:

Salaries and wages per month $ 10,440.00
Rent per month $ 3,600.00
Utilities per month $ 5,200.00
Insurance per quarter to be paid in May $ 900.00
Depreciation expenses per month $ 1,500.00

May 1 cash balance is $9,216.00.

Prepare a cash budget for the month of May and use it to answer the following questions.

Cash sales and collections on account for the month are $_____________.

Payments for inventory for the month are $________________.

Payments for all other expenses for the month are $______________.

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