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Part $1$

Cash

budgetlong dash$$Basic

$$Grenoble Enterprises had sales of

$ $50$ comma $500$$$50,500$

in March and

$ $60$ comma $300$$$60,300$

in April. Forecast sales for$$ May, June, and July are

$ $69$ comma $600$$$69,600,$

$ $80$ comma $400$$$80,400,$

and

$ $99$ comma $800$$$99,800,$

respectively. The firm has a cash balance of

$ $4$ comma $500$$$4,500$

on May $1$ and wishes to maintain a minimum cash balance of

$ $4$ comma $500$$$4,500.$

Given the following$$ data, prepare and interpret a cash budget for the months of$$ May, June, and July.

$(1)$ The firm makes

$23\%23\%$

of sales for$$ cash,

$61\%61\%$

are collected in the next$$ month, and the remaining

$16\%16\%$

are collected in the second month following sale.$$

$(2)$ The firm receives other income of

$ $2$ comma $200$$$2,200$

per month.$$

$(3)$ The$$ firm's actual or expected$$ purchases, all made for$$ cash, are

$ $50$ comma $400$$$50,400,$

$ $70$ comma $300$$$70,300,$

and

$ $80$ comma $100$$$80,100$

for the months of May through$$ July, respectively.$$

$(4)$ Rent is

$ $2$ comma $800$$$2,800$

per month.$$

$(5)$ Wages and salaries are

$12\%12\%$

of the previous$$ month's sales.$$

$(6)$ Cash dividends of

$ $3$ comma $300$$$3,300$

will be paid in June.$$

$(7)$ Payment of principal and interest of

$ $4$ comma $500$$$4,500$

is due in June.$$

$(8)$ A cash purchase of equipment costing

$ $5$ comma $900$$$5,900$

is scheduled in July.$$

$(9)$ Taxes of

$ $5$ comma $600$$$5,600$

are due in June.