Sonoma Housewares Inc.

Cash Budget

For the Three Months Ending July $31$

May June July

Estimated cash receipts from:

Cash sales $$14,550$ $$18,000$ $$24,000$

Collection of accounts receivable $$76,845$ $$78,050$ $$0$

Total cash receipts $$91,395$ $$96,050$ $$24,000$

Estimated cash payments for:

Manufacturing costs $$23,250$ $$27,750$ $$36,750$

Selling and administrative expenses $$28,000$ $$32,000$ $$35,000$

Capital expenditures $$0$ $$0$ $$85,000$

Income tax $$0$ $$14,000$ $$0$

Dividends $$0$ $$0$ $$9,000$

Total cash payments $$51,250$ $$73,750$ $$165,750$

Cash increase or $($decrease$)$ $$40,145$ $$22,300($$$141,750)$

Cash balance at beginning of month $$37,000$ $$77,145$ $$99,445$

Cash balance at end of month $$77,145$ $$99,445($$$42,305)$

Minimum cash balance $$29,000$ $$29,000$ $$29,000$

Excess $($deficiency$)$ $$48,145$ $$70,445($$$71,305)$