Prepare the cash budget

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Reference no: EM132872342

Question - Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019.

 

April

May

June

Credit sales

$689,000

$598,000

$751,000

Credit purchases

$302,000

$282,000

$338,000

Cash Disbursement - Wages/taxes, exp

$137,000

$129,000

$179,000

Interest

$15,600

$15,600

$15,600

Equipment

$53,500

$6,600

$248,000

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000.

Required - Using this information, prepare the cash budget?

Reference no: EM132872342

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