Cash BudgetSales for Blue Bill Corporation are projected as follows for the months of June through NovemberJune.
| Cash Budget | ||
| Sales for Blue Bill Corporation are projected as follows for the months of June through November: | ||
| June | $2,00,000 | |
| July | 2,00,000 | |
| August | 2,00,000 | |
| September | 3,00,000 | |
| October | 5,00,000 | |
| November | 2,00,000 | |
| Credit sales account for 70% of the monthy sales and are collected one month after the sale. | ||
| Other receipts for October are $50,000. | ||
| Variable disbursements are 60% of sales each month. | ||
| Fixed disbursements are $10,000 each month. | ||
| $80,000 should be included in August for taxes. | ||
| The company is obligated to make a $400,000 debt repayment in November. | ||
| Beginning cash in June is $50,000. | ||
| Desired ending cash each month is $10,000. |
