Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2018:
April May June
Credit sales $322,000 $302,000 $362,000
Credit purchases 130,000 153,000 178,000
Cash disbursements $322,000 $302,000 $362,000
Wages, taxes, and
expenses 44,200 11,200 82,000
Interest 154,000 11,700 11,200
Equipment
purchases 63,200 11,200 0
The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase In March 2017, credit sales were $192,000, and credit purchases were $132,000. Using this information, complete the following cash budget.
April May June
Beginning cash balance $125,000
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
Purchases
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disburs ements
Ending cash balance