Reference no: EM132520178

Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year to be:

                  Sales                       Payments

January     14,000                   18,000

February    20,000                  21,300

March        26,000                  19,100

April            22,000                 22,400

May            18,000                    14,700

• Seventy percent of the firm's sales are on credit. Past experience shows that 40 percent of accounts receivable are collected in the month after sale, and the remainder is collected in the second month after sale. What is schedule of cash receipts for March, April and May. Eddie's pays its payments in the following month. Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1.

Question 1: What is cash budget for March, April, and May.