Hi!  I'm studying for a test coming up next week.  I'd be grateful if
someone could help me with this question so that I know how to
complete a cash budget.  Thanks.
Cash Budget. The following data are from the budget of Ritewell
Publishers. Half the company?s sales are transacted on a cash basis.
The other half are paid for with a 1-month delay. The company pays all
of its credit purchases with a 1-month delay. Credit purchases in
January were $30 and total sales in January were $180.
					February	March		April
Total sales 				200		220		180
Cash Purchases				70		80		60
Credit Purchases			40		30		40
Labor and administrative expenses	30		30		30
Taxes, interest, and dividends		10		10		10
Capital expenditures			100		0		0


Complete the following cash budget:

					February	March		April
Sources of cash
	Collections on current sales
	Collections on accounts receivable
		Total sources of cash
Uses of cash
	Payments of accounts payable
	Cash Purchases
	Labor and administrative expenses
	Capital expenditures
	Taxes, Interest and dividends
		Total uses of Cash
Net Cash Inflow
	Cash at start of period		100
	+Net cash inflow
	-Cash at end of period
	+Minimum operating cash balance	100		100		100
	-Cumulative short term financing required

February	March		April
Sources of cash
	Collections on current sales	100		110		90
	Collections on accounts receivable 90		100		110
		Total sources of cash	190		210		200
Uses of cash
	Payments of accounts payable	30		40		30
	Cash Purchases			70		80		60
	Labor and administrative expenses 30		30		30
	Capital expenditures		100		0		0
	Taxes, Interest and dividends	10		10		10
		Total uses of Cash	240		160		130
Net Cash Inflow
	Cash at start of period		100		100		100
	+Net cash inflow		-50		50		70
	-Cash at end of period		50		150		170
	+Minimum operating cash balance	100		100		100
	-Cumulative short term financing required 50	0		-70

The half of the Company's sales better paid for with a one-month delay
are included in the collections on accounts receivable line.  Credit
purchases are paid for with a one-month delay in the payments of
accounts payable line.  Cash purchases, Labor and administrative
expenses, Capital expenses, and Taxes, interest and dividends are paid
in the month they are incurred.

The Cash at the start of the period includes cash generated from
operations during the month (if any) plus cash received from short
term financing or minus cash repaid for short term financing,
depending on whether the cash balance is above or below $100.

Sincerely,

Wonko

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Clarification of Answer by wonko-ga on 15 Nov 2004 11:12 PST

My apologies.  The first line should have been:

The half of the Company's sales that are paid for with a one-month delay

Sincerely,

Wonko

Once again, a clear concise answer.  This way, I can still learn how
to do the problem.  Thanks.

I think you you should add more numbers about expenditures.