Calculating the Cash Budgets: Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2007:

This company predicts that a percent of its credit sales will never be collected. 35 percent of its sales will be collected in the month of the sales, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.
In March 2007, credit sales were $210,000, and credit purchases were $156,000. Using this information, complete the following cash budget:

Credit sales are collected as follows:
65 percent in the month of the sale.
20 percent in the month after the sales
15 percent in the second month after thesales

April S380,000 S396,000 S438,000 S147,000 S175,500 S200,500 May June Credit Sales Credit purchase Cash disbursements Wages, taxes, and expenses Interest Equipment purchase:s S39,750 S11,400 $83,000 S50,300 S48,210 S11,400 S11,400 $91,000 April S280,000 May June Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance