1
Please prepare a cash budget for the month of April from the following
information:
? Estimated cash balance at the end of
March is $ 250,000
? Aprils depreciation is $ 25,000
Taxes of the year of $ 50,000 will be paid in December
?Payroll for April will be $ 45,000
Insurance cost for the month of April will be $ 5,000.
Collections of sales are as follows: 50% in the month of the sale, and 25% in
each of the next two months.
Receivables balance as of the end of March is $ 200,000 ($ 150,000 relating to
February, and $ 50,000 relating to March).
Sales for the month of April are estimated to be $ 300,000
Merchandise purchases are paid as follows: 50% in the month of the purchase
and 50% in the next month.
March's purchases were $ 200,000, and April was $ 150,000.
