Calculating the Cash Budget here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2006.

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected

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April May June $370,000 $386,000 $413,000 Credit Credit purchases 143,000 172,400 198,500 Cash disbursements Wages, taxes, and expenses 48,750 56,500 67,300 12,500 Interest 12,500 12,500 Equipment purchases 78,000 89,000 April May June $210,000 Beginning cash balance Credit receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Intere st Equipment purchases Total cash disbursements Ending cash balance