Prepare a monthly cash budget for Jones Products Inc. for the last six months of 2015 ?

Prepare a monthly cash budget for Jones Products Inc. for the last six months of 2015 Use the following assumptions to prepare your cash budget: Revenue estimates (in thousands): May '15* $385 June '15* $410 July '15 $495 Aug '15 $550 Sept '15 $575 Oct '15$590 Nov '15 $680 Dec '15 $420 Jan '16 $320 * Historical Collection on sales (all sales on credit): Current month: 25% First month following: 64% Second month following: 9% (2% bad debt losses) Purchases of raw materials: 62% of projected following month sales Payment on purchases: 30 days following purchase of materials Other expenses and disbursements (in thousands): Utilities: $15/month Wages and salaries: $35 + 2% current month's sales Other fixed expenses: $5/month Interest on bonds (not LOC): $35 in December ($0 all other months) Quarterly tax payments: $40/month in September and December ($0 all other months) Equipment maintenance: $180 in August ($0 all other months) Line-of-credit: $1,000,000 maximum available credit No maintenance fee 3.50% interest (annual rate, paid monthly) on balance used for prior month Other: - A minimum cash balance of $100K must be maintained at the end of each month - A balance of $55K on the line-of-credit exists at the end of December'14 - Quarterly dividends of $25K will be paid in July and October ($0 all other months) - Any cash in excess of $100K at the end of each month will first be used to pay down any existing balance on the LOC, then swept into money market funds. Money market funds will earn 1.8% per annum (0.15% per month)