Prepare a cash budget for March and April based on the below.

Experience shows that 20% of customers pay in the month of sales, 70% pay 1 month later, and the rest pay 2 months after sale. 3% of customers never pay. Inventory is purchased 1 month prior to sale , and COGS equals 70% of sales. Accounts payable are paid 30 days after purchase. Any financing is done through a 12% LOC. The company has $5000 cash on hand on March 1 and would like to retain a cash balance of $5000.

SHOW YOUR WORK PLEASE

	Jan	Feb	Mar	Apr
Sales	$ 50,000	$ 50,000	$ 40,000	$ 60,000
Wages			$ 3,000	$ 4,000
Rent			$ 1,000	$ 1,000
Other			$ 400	$ 600
Taxes				$ 8,000