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have the following informa PROBLEMS You have information about a restaurant: Budgeted Budgeted Cash Revenue Credit Revenue August September October November December $30,300 29,500 27,900 25,100 32,400 $16,000 14,000 13,000 12,000 15,800 Collections on credit sales and the remainin chases) averages 38% is on a cash basis, an roll costs (which credit revenue average 90% in the month following the amaining 10% in the month following. Cost of sales (pur an 38% of total sales revenue. Forty percent of cost of sales he hasis, and 60% is paid in the month following purchase. Pay (which are paid on a cash basis) are forecast to be $13.100 for hor: $12,700 for November, and $12,200 for December Other budgeted expenses according to the forecast income state ments follow: October $2,500 300 500 Rent expense Insurance expense Utilities expense Other operating costs Depreciation (equipment) Interest expense November $2,500 300 450 900 4,600 400 December $2,500 300 550 1,300 4,600 400 1,100 4,600 400 Note that the rent, utilities, other operating costs, and interest are paid in cash each month as the expense is incurred. The insurance expense is Pald in January each vear in advance for the whole year ($3,600). The urant financed its equipment and makes monthly payments on the owing (principal amount) of $1.000. In December, the restaurant "off some old equipment and estimates it will receive $1,500 *. At the same time, it must spend $5,400 on new equipment, icient cash on hand, the owner plans to pay a bonus to the balance owing (principal plans to sell off some old from the sale. At the same If there is sufficient cash staff. This bonus will amount to $3, Prepare the restaurant's cash budg October, November, and ber 1 is $2,410 will amount to $3,600 and will be paid in December. restaurant's cash budget for each of the three months mber, and December. The beginning cash balance Octo en on June 1, 0008. The is open

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