Prepare a cash budget for Aztec Home Health agency for the months of May, June, and July. The firm wishs to maintain a $200,000 minimum cash balance during the period, and it presently has a $220,000 balance as of April 30. Revenues are presented. The firm collects 30% of its revenue in the month viliiling occured, 30% in the next mont, and 25% in the following month. The firm ails to collect 15% of its revenue because either bad debt or contractual allowances. Expense budget relationships are presented in the following.

Payroll= 50,000 per month plus 0.50 x revenues

Supplies =0.10 x revenues

Rent = $50,000 per month

Debt service= $150,000 in july

capital expenditures=$75,000

in june Eight percent of payroll expense is paid in the month this expense was incurred, and 20% is paid in the following month reported. A.Determine during which months Aztec can invest surplus funds and during which months it might need to borrow. B. Build the cash budget , then build the sections of the cash budget using the relationship in the problem

Table 23-8 Revenues for Aztec Home Health Agency

January $500,000

February 500,000

March 600,000

April 600,000

May 700,000

June 800,000

July 1,000,000

August 1,000,000