Cash Budget. Some key figures from the budget of Moore Company for the first quarter of operations for 20X2 are shown below.
January February March
Credit sales $80,000 $70,000 $86,000
Credit purchases 34,000 32,000 40,000
Cash disbursements
Wages and salaries 4,000 3,500 4,200
Rent 1,500 1,500 1,500
Equipment purchases 25,000 2,000
The company estimates that 10 percent of its credit sales will never be collected. Of those that will be collected, 50 percent will be collected in the month of sale and the remainder will be collected in the following month. Purchases on account will all be paid for in the month following purchase. 20X2 December sales were $90,000.
Using the preceding information, complete the following cash budget.
January February March
Beginning cash balance $100,000
Cash receipts
Cash collections from credit sales —–—— —–—— —–——
Total cash available —–—— —–—— —–——
Cash disbursements
Purchases —–—— —–—— —–——
Wages and salaries —–—— —–—— —–——
Rent —–—— —–—— —–——
Equipment purchases —–—— —–—— —–——
Total disbursements —–—— —–—— —–——
Ending cash balance ________ ________ ________