The following data are available for the budget preparation of Ramsey Corporation:

	Feb	Mar	Apr
Total Sales	$220	$200	$180
Cash Purchases	70	80	60
Credit Purchases	40	30	40
Labor and administrative purchases	30	30	30
Taxes, interests, and dividends	10	10	10
Capital Expenditure	100	0	0

Additional information:

• Half the companys sales are transacted on a

• The company pays all of its credit purchases with a 1-month delay.

• Credit purchases in January were $30.

• Total sales in January were $180.

• Cash balance at 1 February was $100.

Instructions:

a) Using the above information, complete the following cash budget. Show separately your calculations for cash collections and payments for purchases. (15 points)

February March April Beginning cash balance ? ? ? Cash receipts: Cash sales ? ? ? Cash collections from credit sales ? ? Total cash available ? ? ? Cash disbursements: Cash purchases ? ? ? Payments for credit purchases ? ? ? Labor and administrative expenses ? ? ? Capital expenditures ? ? ? Taxes, interest, and dividends ? ? ? Total cash disbursements ? ? ? Ending cash balance ? ? ? February March April Beginning cash balance ? ? ? Cash receipts: Cash sales ? ? ? Cash collections from credit sales ? ? Total cash available ? ? ? Cash disbursements: Cash purchases ? ? ? Payments for credit purchases ? ? ? Labor and administrative expenses ? ? ? Capital expenditures ? ? ? Taxes, interest, and dividends ? ? ? Total cash disbursements ? ? ? Ending cash balance