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Short-term financial planning for the PDC Company was described earlier in this chapter. Refer to the PDC Company's projected monthly operating schedules in Table 6.2. PDC's monthly sales for the remainder of 2011 are expected to be:
September ........ $ 80,000October .......... $100,000November ....... $130,000December ........ $160,000
A. Prepare PDC's sales schedule, purchases schedule, and wages schedule for each of the last four months of 2011.
B. Prepare cash budgets for each of the last four months of 2011 for the PDC Company and describe how the forecast affects the end-of-month cash balances.
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