Company GHI has the following information:
Sales are as follows: $200,000 for December, $300,000 for January, $250,000 for February, $200,000 for March, and $300,000 for April. Accounts Receivable – 40% cash sales in current month, 60% paid in the following month.
Purchases – 50% of next month’s sales, paid one month later.
Salaries - $75,000 per month.
Overhead and Utilities - $60,000 per month.
Interest - $20,000 per month.
December ending cash balance - $60,000.
Minimum desired Monthly cash balance of $50,000.
Compute the Cash Inflows, Cash Outflows, and the Cash Budget for January, February, and March.