Question 3

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2009:

April May June

Credit sales 547,200 570,240 630,720

Credit purchases 211,680 252,720 288,710

Cash disbursements

Wages, other expenses 57,240 69,420 72,430

Interest 16,410 16,410 16,410

Equipment purchases 119,520 131,040 0

The Company predicts that 3 percent of its credit sales will never be collected, 36 percent of its sales will be collected in the month of sale, and the remaining 61 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2009, credit sales were $302,400, and credit purchases were $224,640. The April 1 cash balance was $403,200. What is the cash balance at the end of May?

I STARTED WORKING AS FOLLOWINGS ...PLEASE GUIDE ME....HOW DO I GET THE BEGINNING CASH BALANCES FOR MAY & JUNE

	March	April	May	June
Credit Sales	302,400	547,200	570,240	630,720
Credit Purchase	224640	211,680	252,720	288,710
Beginning cash balance		403,400
Cash receipts
Cash Collection from Credit Sales		(547,200x0.36)+(302,400x0.64) 390,528	(570,240x0.36)+(547,200x0.64) 555,494	(630,720x0.36)+(570,240x0.64) 592,013
Total Cash Available		793,928	555,494	592,013
Cash Disbursements
Purchases		224640	211680	252720
Wages and Other Expenses		57240	69420	72430
Interest		16410	16410	16410
Equipment Purchases		119520	-131040	0
Total Cash Disbursements		417,810	166,470	341,560
Ending Cash Balance		793,928-417,810 376,118	555,494-166,470 389,024	592,013-341,560 250,453