ManagerialAccounting

You are given the following information for Puppy Biscuits Unlimited: All sales are on credit. 58% are collected in the month of sale, 40% in the following month and the remaining 2% are uncollectible. Purchases are paid in full the month following the purchase. General expenses are pald as incurred and include 16,000 in depreclation. The management of Puppy Biscuits like to maintain a minimum of $30,000. Any amount below this can be borrowed in increments of $2,500. All borrowings are made at the end of the month. Required: Prepare the cash budget for the month of February assuming an expected cash balance of 48,000 at the beginning of the month