Nichols Co. has the following information for the second quarter of 2017:
Cash balance, March 31 $ 15,000
Sales for April; all cash 200,000
Sales for May; all cash 300,000
Sales for June; all cash 400,000
Cost of Goods Sold is 75% of Sales; all cash
Operating expenses is 10% of Sales; all cash
Purchase a new computer in June with cash 65,000
Interest expense is paid in May 40,000
Income taxes paid:
April 9,000
May 1,500
June 18,000
The minimum cash balance for any month is $10,000.
Prepare a cash budget for each month in the second quarter of 2017, showing any excess cash or any financing needed. Any interest on the financing will be deferred until the fiscal year end in December.

Question

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The Answer of Nichols Co. has the following information for the second quarter of 2017:
Cash balance, March 31 $ 15,000
Sales for April; all cash 200,000
Sales for May; all cash 300,000
Sales for June; all cash 400,000
Cost of Goods Sold is 75% of Sales; all cash
Operating expenses is 10% of Sales; all cash
Purchase a new computer in June with cash 65,000
Interest expense is paid in May 40,000
Income taxes paid:
April 9,000
May 1,500
June 18,000
The minimum cash balance for any month is $10,000.
Prepare a cash budget for each month in the second quarter of 2017, showing any excess cash or any financing needed. Any interest on the financing will be deferred until the fiscal year end in December.