Construct a cash budget
Response to the following problem:
Farm-to-Market (FM) is a major food cooperative. Suppose FM begins 2015 with cash of $7 million. FM estimates cash receipts during 2015 will total $103 million. Planned payments will total $97 million. To meet daily cash needs next year, FM must maintain a cash balance of at least $11 million. Prepare the organization's cash budget for 2015.