Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019.

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 2019, credit sales were $561,000. Using this information, complete the following cash budget:

Transcribed Image Text:

April May June $689,000 $598,000 $751,000 Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses 302,000 282,000 338,000 129,000 179,000 137,000 Interest 15,600 15,600 15,600 Equipment purchases 53,500 6,600 248,000 April May June Beginning cash balance Cash receipts $182,000 Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance