E Homework: Chapter 4 Homework Question 5, P4-9 (similar ... Part 1 of 10 HW Score: 62.5%, 5 of 8 points O Points: 0 of 1 Save S5,200 on May 1 and Cash budget-Basic Grenoble Enterprises had sales of S49,500 in March and $59,900 in April. Forecast sales for May, June, and July are S70,500, $79,500, and $100,400, respectively. The firm has a cash balance wishes to maintain a minimum cash balance of $5,200. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 25% of sales for cash. 60% are collected in the next month, and the remaining 15% are collected in the second month following sale. (2) The firm receives other income of $1,700 per month. (3) The firm's actual or expected purchases, all made for cash, are $50,300 $69,500, and 580,400 for the months of May through July, respectively. (4) Rent is $3,100 per month. (5) Wages and salaries are 10% of the previous month's sales, (6) Cash dividends of $3.200 will be paid in June. (7) Payment of principal and interest of $3,900 is due in June. (0) A cash purchase of equipment costing 55,600 is scheduled in July. (9) Taxes of $5,800 are due in June. Complete the first month of the cash budget for Grenoble Enterprises below. (Round to the nearest dollar. Please input all the values in the table before checking your answers.) March April May Sales $ 70,500 49,500 $ 12,375 59,900 S 14,975 S Cash sales Lag 1 month Lag 2 months S S S S Other income Total cash receipts S Help Me Solve This View an Example Get More Help Clear All Check