Here are some important figures from the budget of Cornell Inc for the second quarter 2007

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 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

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May S 380,000.00 S396,000.00 S 438,000.00 S 147,000.00 S175,500.00 S 200,500.00 April June Credit Sales Credit Purchases Cash Disbursements Wages Taxes and Expenses S 39,750.00 S48,210.00 S 50,300.00 Interest Equipment Purchases S 83,000.00 S 91.000.00 S S 11,400.00 S11,400.00 S11,400.00 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 May April S 280,000.00 June