Nichols Company
Cash Budget
For the Months Ended April 30, May 31 and June 30, 2017
April May June
Beginning cash balance $15,000 $36,000 $39,500
Collections from customers 200,000 300,000 400,000
Total cash available 215,000 336,000 439,500
Budgeted cash payments:
Purchase of inventory 150,000 225,000 300,000
Operating expenses 20,000 30,000 40,000
Interest expense 40,000
Income taxes 9,000 1,500 18,000
Purchase of new computer ______ ______ 65,000
Total payments 179,000 296,500 423,000
Cash available before new financing 36,000 39,500 16,500
Minimum cash balance 10,000 10,000 10,000
Cash available for additional investments $26,000 $29,500 $6,500