Compute the cash inflows and cash outflows

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Reference no: EM131884658

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.

Reference no: EM131884658

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