prepare the cash budget

prepare the cash budget

Management of Pand Corporation requested a cash budget for the coming quarter, January through March 2020. The budget is to be prepared form the following data: November December January February March Sales on $60.000 $70.000 $50.000 $60.000 $70.000 account Payroll $20.000 $22.000 $21.000 $22.000 $23.000 Purchases on $15.000 $20.000 $15.000 $25.000 $20.000 account Depreciation $5.000 $5.000 $5,000 $5,000 $5,000 Misc.cash $5.000 $6.000 $6.000 $7.000 $6.000 operating exp Debt retirement $0 $26.000 $0 SO $26.000 Collections of accounts receivable amount to 25% in the month of sale, 60% in the first month after sales, 10% in the second month after sales and 5% written off as uncollectible. Purchases are paid off at the race of 20% in the month of purchase and 80% in the first month following purchase. Cash on hand at January 1, is $6.000