The Accountant has not been on vacation for an entire year and decides to take a couple of days off. The Manager of your company asked you to prepare a cash budget, as the Board of Directors are going to meet tomorrow. Your company is a service company and caters to clients with a minimum of $500,000 per annum income. A review of the company’s cash policy revealed that there must be a minimum balance of $100,000. The current opening cash balance is $300,000. The information under review pertains to periods ending June 30th and September 30th 2022. The following information has been collected from other portions of the master budget and elsewhere.

Estimated Collections from Clients: 

1st period                                                                   $420,000

2nd period                                                                  $1,000,000

Estimated Payments: 

Salaries 

1st period                                                                   $280,000

2nd period                                                                  $350,000

Overhead costs 

1st period                                                                   $250,000

2nd period                                                                  $300,000               

Selling and Administrative (includes $5,000 depreciation) 

1st period                                                                   $125,000

2nd period                                                                  $140,000

Other (Expected): 

Sale of machinery (1st period)                                   $40,000

Interest from investment (2nd period)                        $60,000

Purchase of new machinery (2nd period)                  $226,000

Required: Prepare a cash budget for each of the periods in 2022.