The management of Tridell Corporation requested a cash budget for the coming quarter, January through March. The

Question:

The management of Tridell requested a for the coming quarter, January through March. The budget is to be prepared from the following data:

The management of Tridell Corporation requested a cash budget for

Collections of accounts receivable are 25% in the month of sale, 60% in the first month after sale, 10% in the second month after sale, and 5% written off as uncollectible. Purchases are paid off at the rate of 20% in the month of purchase and 80% in the first month following purchase. Cash on hand at January 1 is $6,000.
Required:
Prepare a cash budget for January, February, and March.

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