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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
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?
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