Question: Calculating the Cash Budget. Here are some important figures from the budget of Marston, Inc., for the second quarter of 2016.
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 2016, credit sales were $468,000. Using this information, complete the following cash budget:
