1. Write a definition for expenditure. Your answer should be between 10 and 20 words
2. what actions might Bay Water Ceramics take when they see the forecast cash position at the end of June as per table below $44,275? Your answer should be between 15 and 25 words.

BAY WATER CERAMICS
Cash Budget April - June
	February (Actual)	March (Actual)	April (Forecast)	May (Forecast)	June (Forecast)	TOTAL April - June
CASH RECEIPTS BUDGET
Sales	$50,000	$55,000	$60,000	$60,000	$65,000	$185,000
Credit Sales 75%	$37,500	$41,250	$45,000	$45,000	$48,750	$138,750
Cash sales 25%	$12,500	$13,750	$15,000	$15,000	$16,250	$46,250
Collections current month 40%	$15,000	$16,500	$18,000	$18,000	$19,500	$55,500
Collections next month 35%		$13,125	$14,438	$15,750	$15,750	$45,938
Collections 2nd month 25%			$9,375	$10,313	$11,250	$30,938
Total Credit Collections	$15,000	$29,625	$41,813	$44,063	$46,500	$132,375
Total Cash Receipts	$27,500	$43,375	$56,813	$59,063	$62,750	$178,625
CASH PAYMENTS BUDGET
Purchases	$0	$27,500	$30,250	$36,000	$39,000	$105,250
Payments current month 40%	$0	$11,000	$12,100	$14,400	$15,600	$42,100
Payments following month 60%			$16,500	$18,150	$21,600	$56,250
Depreciation	$5,000	$5,000	$5,000	$5,000	$5,000	$15,000
Net Cash Expenses (Selling and Administration are excluded depreciation)	$8,000	$8,000	$8,000	$8,000	$8,000	$24,000
Interest expense		$4,500			$4,500	$4,500
New Equipment				$18,000		$18,000
TOTAL CASH PAYMENTS	$8,000	$23,500	$36,600	$58,550	$49,700	$144,850
CASH BUDGET
Opening Cash Balance			$10,500	$30,713	$31,225	$10,500
Cash receipts			$56,813	$59,063	$62,750	$178,625
Cash Payments			$36,600	$58,550	$49,700	$144,850
CLOSING CASH BALANCE	$0	$10,500	$30,713	$31,225	$44,275	$44,275