Given the following information:
|
Sales
|
|
June
|
$100,000
|
|
July
|
500,000
|
|
August
|
100,000
|
|
September
|
50,000
|
|
October
|
100,000
|
|
November
|
1,000,000
|
a. 40% of the sales are for credit and are collected one month after the sale.
b. Other receipts: $100,000 in October
c. Variable disbursements: 80% of sales each month
d. Other disbursements: $10,000 a month
e. $80,000 for taxes in August
f. Beginning cash: $50,000
g. Desired cash: $10,000
Prepare a monthly cash budget for the firm.