Question $2$

Following are some important figures from the budget of Jasmine, Inc., for the year $2016$:

February March April

Credit sales $$289,000$ $$265,000$ $$378,000$

Credit purchases $$89,000$ $$126,000$ $$187,000$

Cash disbursements

Wages, taxes, and

expenses $$46,000$ $$41,000$ $$58,000$

Interest $$12,700$ $$12,700$ $$12,700$

Equipment purchases $$67,000$ $$133,000$ $$0$

The company predicts that $3\%$ of its credit sales will never be collected, $47\%$ of its sales will be collected in the month of the sale, and the remaining $50\%$ will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In Jan $2016,$ credit sales were $$245,000,$ and credit purchases were $$95,000.$ The beginning cash balance of Feb is $ $120,000.$

Prepare a cash budget for Jasmine, Inc., for the months of February, March and April.