Suppose Eastnorth Manufacturing is planning to change its credit policies next year. It anticipates that 10 percent of each month’s sales will be for cash, two-thirds of each month’s receivables will be collected in the following month, and one-third will be collected two months following their sale. Assuming that Eastnorth’s sales forecast in Table 15.4 remains the same and the expected cash outflows in Table 15.5 remain the same, determine Eastnorth’s revised cash budget.

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Monthly Cash Inflows, Eastnorth Manufacturing Inc. TABLE 15.4 Nov. Dec. Jan. Feb. Mar. Aprг. Sales $80,000 $100,000 $30,000 $40,000 $50,000 $60,000 Collections: 50% of sales of the previous month 50,000 15,000 40,000 20,000 25,000 50% of sales of the second previous month 15,000 20,000 40,000 50,000 Total cash receipts $90,000 $65,000 $35,000 $45,000