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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			$ 331,900	$ 343,000	$ 326,500	$ 333,200
Cash Disbursements
Purchases:	$ 130,000	$ 120,000	$ 120,000	$ 180,000	$ 200,000	$ 170,000
Payments one month after purchase		$ 52,000	$ 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