Problem 26-10 Calculating the Cash Budget

Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2013:

	April			May			June
Credit sales	$	547,200		$	570,240		$	630,720
Credit purchases		211,680			252,720			288,450
Cash disbursements
Wages, taxes, and expenses		57,240			69,422			72,432
Interest		16,416			16,416			16,416
Equipment purchases		119,520			131,040			0

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2013, credit sales were $302,400, and credit purchases were $224,640. Use the above information to complete the following cash budget. (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

		April		May		June
Beginning cash balance	$	403,200	$		$
Cash receipts
Cash collections from credit sales
Total cash available	$		$		$
Cash disbursements
Purchases	$		$		$
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements	$		$		$
Ending cash balance	$		$		$