ACTIVITY 3.2 Directions: Answer the problem and write your answers on the table provided below the problem. Assumptions: 1. Revenues for the first five months are as follows: MONTH REVENUES JANUARY 300,000 FEBRUARY 300,000 MARCH 500,000 APRIL 600,000 MAY 1.000.000 2. Of the total sales transactions, 90% will be received in cash, while the other 10% will be collected after two months from the transaction month. 3. Purchases for the first five months are as follows: MONTH PURCHASES JANUARY 300,000 FEBRUARY 500,000 MARCH 0 APRIL 400,000 MAY 1,000,000 4. Of the total purchase transactions, 75% will be paid in cash and the other 25% will be pald one month folowing the transaction month. 5. Other monthly expenses are payment of rent, supples, and labor amounting 10,000, 5,000, and 10,000 correspondingly. 6. Beginning cash is 500,000 7. Interest is 17 per month and will be paid one month after the loan. Required: Prepare the cash budget for MEJ Company Answer: MEJ COMPANY Cash Budget Schedule of Cash Receipts JANUARY Schedule of Cash Disbursements Net Monthly change Required: Prepare the cash budget for MEJ Company Answer: MEJ COMPANY Cash Budget Schedule of Cash Receipts JANUARY Schedule of Cash Disbursements Net Monthly change