Sales for July, August, and September are expected to be $200,000, $180,000, and $220,000, respectively, for Pasta Company. All sales are on account and are collected 50 percent in the month of the sale and 50 percent in the following month. On average, customers take a one percent sales discount in the first month. Raw materials are purchased one month before being needed, and all purchases and expenses are paid for as incurred. Activities for the quarter are expected to be:

July

August

September

Raw materials used

$40,000

$36,000

$44,000

Salaries

70,000

68,000

92,000

Maintenance and repairs

18,000

18,000

18,000

Depreciation

36,000

36,000

36,000

Utilities and other

14,000

14,000

15,000

Dividends paid

-0-

10,000

-0-

Payment on bonds

8,000

8,000

8,000

Using the given information, prepare a cash budget for August.

Estimated cash receipts from:
Total Cash Receipts
Estimated cash payments for:
Total Cash payments
Cash increase (decrease)