The PDC Company was described earlier in this chapter. Refer

The PDC Company was described earlier in this chapter. Refer to the PDC Company’s projected monthly operating schedules in Table 6.2. PDC’s sales are projected to be $80,000 in September 2011.

A. Prepare PDC’s sales schedule, purchases schedule, and wages schedule for August 2011.

B. Prepare a cash budget for August 2011 for PDC and describe how the forecast affects the end-of-month cash balance.


Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment.  Its primary purpose is to provide the...