CASH BUDGETING
Helen Bowers, owner of Helen’s Fashion Designs, is planning torequest a line of credit from her bank. She has estimated thefollowing sales forecasts for the firm for parts of 2016 and2017:
May 2016$186,000June186,000July372,000August540,000September720,000October360,000November360,000December90,000January 2017180,000
Estimates regarding payments obtained from the credit departmentare as follows: collected within the month of sale, 10%; collectedthe month following the sale, 75%; collected the second monthfollowing the sale, 15%. Payments for labor and raw materials aremade the month after these services were provided. Here are theestimated costs of labor plus raw materials:
May 2016$90,000June90,000July126,000August883,000September307,000October234,000November161,000December90,000
General and administrative salaries are approximately $26,000 amonth. Lease payments under long-term leases are
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