Eddie's Bar and Restaurant Supplies Expects Its Revenues and Payments

Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year to be: $$\begin{array} { l c c } & \underline { \text { Sales } } & \underline { \text { Payments } } \\\text { January } & \$ 24,000 & \$ 18,000 \\\text { February } & 20,000 & 21,300 \\\text { March } & 35,000 & 19,100 \\\text { April } & 22,000 & 22,400 \\\text { May } & 28,000 & 14,700\end{array}$$ Eighty percent of the firm's sales are on credit. Past experience shows that 40% of accounts receivable are collected in the month after sale, and the remainder is collected in the second month after the sale. Prepare a schedule of cash receipts for March, April, and May. Eddie's pays its payments in the following month. Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $6,000 on March 1. Prepare a cash budget for March, April, and May