Reference no: EM132073909

Of its monthly sales, The Kingsman Company historically has had 25 percent cash sales with the remainder paid within one month. Each months purchases are equual to 75 percent of the next months sales forecast; suppliers are paid one month after the purchase.Salary expenses are $50,000 a month, except in January when bonuses equal to 1 percent of the previos year's sales are paid out. Interest on a Bond Issue of $10,000 is due in March. Overhead and utilities are expected to be $25,000 monthly. Dividends of $45,000 are to be paid in March. Kingman's estimated sales for January are $100,000; February, $200,000; March, $250,000; and April, $300,000.00 a) What are Kingman's expected monthly cash inflows during January through April? b) What are Kingman's expected monthly cash outflows during January through April? c) Determine Kingman's monthly cash budget for January through April. Assume a minimum desired cash balance of $40,000 and an ending December cash balance of $50,000.

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