The president of the retailer Prime Products has just approached the companys bank with a request for a $30,000, 90-day loan.

On April 1, the start of the loan period, the cash balance will be $26,000. Accounts receivable on April 1 will total $155,850, of which $137,000 will be collected during April and $13,500 will be collected during May. The remainder will be uncollectible.

30% of a months sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected.

	April		May		June
Sales (all on account)	$	375,000	$	412,000	$	336,000
Merchandise purchases	$	238,000	$	155,000	$	172,000
Payroll	$	18,800	$	18,800	$	22,500
Lease payments	$	24,400	$	24,400	$	24,400
Advertising	$	74,800	$	74,800	$	50,420
Equipment purchases					$	106,500
Depreciation	$	17,000	$	17,000	$	17,000

Accounts payable for merchandise purchases during March, which will be paid in April, total $166,500. In preparing the cash budget, assume that the $30,000 loan will be made in April and repaid in June. Interest on the loan will total $900.

Prepare a cash budget, by month and in total, for the three-month period. (Cash deficiency, repayments and interest should be indicated by a minus sign.)

Prime Products
Cash Budget
	April	May	June	Quarter
Beginning cash balance
Add receipts:
Collections from customers
Total cash available	0	0	0	0
Less cash disbursements:
Merchandise purchases
Payroll
Lease payments
Advertising
Equipment purchases
Total cash disbursements	0	0	0	0
Excess (deficiency) of cash available over disbursements	0	0	0	0
Financing:
Borrowings
Repayments
Interest
Total financing	0		0	0
Ending cash balance	$0	$0	$0	$0