Prepare cash budget using following information:

Sales

Jan 80000

Feb 75000

Mar 92000

April 88000

May 76000

June 81000

The selling price was set to offer 15% margin on the purchase price of the goods.

The company has a policy to keep a monthly closing balance of inventory as 50% of the requirement of the next month.

Beginning inventory for the month of Jan is $43,500 and ending inventory of june is 39,200.

The purchases are paid 40% in the month of purchase, 30% in the next month, and 30% in the following month.

Prepare cash disbursement budget for the period from March to May.