Compile a Cash budget

Cash budget : basic Farmer Delight corporation reported sales of $350,00 in june, $380,00 in july, and $390,000 in agust The forecats for sepetember, october, november are $385,000, $418,000, and $429,000, respectively The initial cash balance on september is $150,000 and minimum of $8,000 should be kept Use the given information to compile a cash budget for the months of september, october, and november

1 Farmer Delight predict that 5% of its sales will never be collected, 30% of its sales will be cash sales, and the remaining 65% will be collected in the following month

2 Farmers delight recevies other monthly income of $3,000

3 The actual or expected purchase are $150,000, $120,000, and $115,000 for the months of september to november, respectively, and 50% are paid in cash while the remainder is paid in following month The purchases for agust were $ 120,000

4 Monthly rent is $3,500 chargeable only in october and november

5 Wages and salaris are 12 % of the previous months sales

6 Cash dividends of $4,600 are declared and will be paid in september

7 Long-term loan repayment of principal and interest of $4,700 is due in october

8 Additional equipment costing $8,500 is ordered and scheduled to be paid for in cash in november

9 Taxes of $8,250 are due in november


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