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Prepare a Cash Budget for the months of January to March 2019
Your Cash budget should include:
1) Cash Receipts Section (6 marks)
2) Cash Disbursements Section (10.5 marks)
2) Cash Balance Section (4.5 marks)
Sales information for November and December of 2018 and Sales forcast for January to March of 2019 are as follows
November (2018)		175,000
December (2018)		190,000
January (2019)		180,000
February (2019)		180,000
March (2019)		195,000
The following information is also available from the credit manager regarding cash sales and credit sales
Cash sales	20%
Collect after 30 days	50%
Collect after 60 days	30%
Cost of sales are	60%	of each month's sales
These purchase are paid 30 days after the purchases are made
Monthly sellling and adminsitrative expenses are as followed:
Rent		9,200
Salaries		32,000
Utilities		2,000
Office supplies		1,500
Other Information:
Their will be a purchase of an equipment in February for:		$50,000
The cash balance on January 1, 2019 is:		$27,500

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