Budgeted cash sales

15000

18000

16000

Budgeted credit sales

20000

21000

22000

Budgeted inventory purchases

22000

24000

28000

Budgeted selling and admin expenses

3000

2000

2500

Credit sales are expected to be collected 60% in month of sale; 40% in month following

Inventory purchases are expected to be paid 50% in month of purchase; 50% in month following

All selling and admin expenses are expected to be paid in full in month incurred. Depreciation expense is

included in budget at $500 per month

Company budgets the purchase of equipment in February for $45000

Company maintains a minimum cash balance of $10000

Interest rate for any borrowings is 6%. Borrowings (and repayments) are always made on the last day of the month

Prepare a cash budget for January February and March.