Search this course Ch 24: End-of-Chapter Problems - Cash Budgeting A firm has the following monthly pattern of sales: X $ January February March April May June 200 400 600 1,200 600 400 Seventy percent of the sales are on credit and are collected after a month. The company pays wages each month that are 55 percent of sales and has fixed disbursements (for example, rent) of $150 a month. In March it receives $150 from a bond that matures; in April and June it makes a tax payment of $250. Management maintains a cash balance of $100 at all times. Construct a cash budget that indicates the firm's monthly needs for short-term financing. Its beginning cash position is $100. Round your answers to the nearest dollar. Enter the disbursements values in Part 2 and desired level of cash in Part 3 as positive values. Use a minus sign to enter cash outflows, shortage of cash values, negative initial and ending cash positions in Part 3, if any. not leave any cells blank. If the answer is zero, enter "o", January February March April May June s s s s $ $ $ S s $ $ 15 5 $ 5 S s $ 5 Part 1 Anticipated sales $ Cash sales 5 Accounts collected s Other receipts $ Total receipts $ Part 2 Variable disbursements $ Fixed disbursements $ Other disbursements 5 Total cash disbursements S Part 3 Net change in cash $ s 150 $ $ 150 $ s 150 $ $ 3 150 $ $ $ 150 $ s 150 $ 5 s June 400 Seventy percent of the sales are on credit and are collected after a month. The company pays wages each month that are 55 percent of sales and has fixed disbursements (for example, rent) of $150 a month. In March it receives $150 from a bond that matures; in April and June it makes a tax payment of $250. Management maintains a cash balance of $100 at all times. Construct a cash budget that indicates the firm's monthly needs for short term financing. Its beginning cash position is $100. Round your answers to the nearest dollar. Enter the disbursements values in Part 2 and desired level of cash in Part 3 as positive values. Use a minus sign to enter cash outflows, shortage of cash values, negative initial and ending cash positions in Part 3, if any. Do not leave any cells blank. If the answer is zero, enter "0". January February March April May June $ s $ $ 5 $ $ s $ $ + $ $ 5 S $ $ $ $ 150 $ 150 $ Part 1 Anticipated sales $ Cash sales Accounts collected $ Other receipts $ Total receipts Part 2 Variable disbursements $ Fixed disbursements $ Other disbursements $ Total cash disbursements $ Part 3 Net change in cash $ $ Initial cash position Ending cash position $ Desired level of cash Excess (shortage) of cash s $ 150 $ $ 5 13 150 $ S 150 5 150 $ 4 $ $ $ S $ 5 13 S s $ $ 5