Multiple cash budgets$-$Scenario analysis Brownstein, Inc., expects sales of $$100,000$ during each of the next $3$

months. It will make monthly purchases of $$55,000$ during this time. Wages and salaries are $$18,000$ per month plus $6\%$ of

sales. Brownstein expects to make a tax payment of $$21,000$ in the next month and a $$15,000$ purchase of fixed assets in

the second month and to receive $$8,000$ in cash from the sale of an asset in the third month. All sales and purchases are for

cash. Beginning cash and the minimum cash balance are assumed to be zero.

a$.$ Construct a cash budget for the next $3$ months.

b$.$ Brownstein is unsure of the sales levels, but all other figures are certain. If the most pessimistic sales figure is $$79,000$

per month and the most optimistic is $$124,000$ per month, what are the monthly minimum and maximum ending cash

balances that the firm can expect for each of the $1-$month periods?

c$.$ Briefly discuss how the financial manager can use the data in parts $a.$ and $b.$ to plan for financing needs.

a$.$ Construct a cash budget for the next $3$ months.

Complete the Brownstein, Inc.$\text{'}$s cash budget for the $1$st month below: $($Round to the nearest $$000.)$

Brownstein, Inc.

Cash Budget $($$$000)$Brownstein$,$ Inc., expects sales of $ $100$ comma $000$ during each of the next $3$ months. It will make monthly purchases of $ $55$ comma $000$ during this time. Wages and salaries are $ $18$ comma $000$ per month plus $6\%$ of sales. Brownstein expects to make a tax payment of $ $21$ comma $000$ in the next month and a $ $15$ comma $000$ purchase of fixed assets in the second month and to receive $ $8$ comma $000$ in cash from the sale of an asset in the third month. All sales and purchases are for cash. Beginning cash and the minimum cash balance are assumed to be zero.

a$.$ Construct a cash budget for the next $3$ months.

b$.$ Brownstein is unsure of the sales$$ levels, but all other figures are certain. If the most pessimistic sales figure is $ $79$ comma $000$ per month and the most optimistic is $ $124$ comma $000$ per$$ month, what are the monthly minimum and maximum ending cash balances that the firm can expect for each of the$1-$month periods?

c$.$ Briefly discuss how the financial manager can use the data in parts a$.$ and b$.$ to plan for financing needs.

Question content area bottom

Part $1$

a$.$ Construct a cash budget for the next $3$ months.

Complete the$$ Brownstein, Inc.$\text{'}$s cash budget for the $1$st month$$ below: $($Round to the nearest$$ $$000.)$

Brownstein, Inc.

Cash Budget $($$$000)$

Most likely scenario

$1$st Month

Sales

$

Sale of asset

$

Purchases

$

Wages and salaries

$

Taxes

$

Purchase of fixed asset

$

Net cash flow

$

Add: Beginning cash

$

Ending cas