Singal Inc. is preparing its cash budget. It expects to have sales of P30, 000 in January, P35, 000 in February, and P35, 000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?

Assume that sales and expenses forecasts for months April, May, June, and July are as follows. month, 60% are paid in the next month, and 20% are paid in the second month after. All expenses in a month are paid in the same month. There is a $20,000,000 minimum required cash balance at the end of each month, and any shortage from this minimum requirement will be covered by obtaining a loan.  Any excess over $20,000,000 will be used to reduce or pay off cumulative loan. Initial cash balance in June is $6,000,000 and there is no cumulative loan at this time.  Monthly prorated tax rate is 2%, and monthly interest rate on cumulative loan is 1%.  Requirements: Prepare cash budget proforma for months June and July and interpret the result in detail.

Leaning Tower of Pizza, Inc. is preparing its master budget for its first quarter of business. It expects to sell 8,000 pizzas at $7 per pizza per month. It expects to collect 90% of the sales in the month of the sale and 10% in the following month. Calculate its accounts receivable balance at the end of its first quarter.

Janus Inc. needs to prepare a cash budget. The following are actual and forecasted sales figures: Actual Forecast November December January February March April $200,000 $220,000 $280,000 $320,000 $340,000 $330,000   Thirty percent of each month's sales are in cash, 50% are paid the month after sale and 20% are paid two months after sale. Materials cost 30% of sales and are purchased one month prior to sale and paid for 30 days later. Labor expense is 40% of sales, selling and administrative expenses are 5% of sales and both are paid in the month of sale. Overhead is $28,000 per month, depreciation expense is $10,000 per month. Taxes of $8,000 will be paid in January and dividends of $2,000 will be paid in March.  Cash on hand at the beginning of January is $80,000 and the desired cash balance is $75,000. Prepare the cash budget for January – March.