Prepare a Cash Budget and show your work!

Cash Budget Assignment Fact Scenario: Using the following information prepare a cash budget for this company for the months of January to June / 2010 Forecasted Sales: November 2009 $20,000 December 2009 $30,000 January $40,000 February $50,000 March. $60,000 April $70,000 May $80,000 June $90,000 50% of sales are on a cash basis. 30% are collected after 30 days 20% are collected after 60 days . The cost of sales is 50% which is incurred in the month that the sale is made. These goods are paid for 30 days after the purchase is made. . . Selling and admin expenses for each month are: Wages $2,000 Telephone $100 Depreciation $1,000 Rent $2,000 Office $150 Other expenses include: Taxes of $500 paid in June Purchased an asset May for $2,000 The cash balance on Jan 1 is $10,000