Problem $24-05$

Given the following information, construct the firm$$s cash budget for the given months and answer the questions.

All sales are for credit and collections occur after $30$ days.

A $$80,000$ Treasury bill matures in March.

Monthly fixed disbursements are $$20,000.$

Variable disbursements are $40$ percent of sales and occur one month prior to sales. $($Variable cash disbursements are given for April.$)$

A tax payment of $$30,000$ is due in April.

A payment of $$40,000$ is to be received in February.

The initial cash is $$20,000.$

The minimum required cash balance is $$13,000.$