Chapter 22, Problem E22.28E

To determine

Cash budget:

A cash budget is the budget which shows the estimated receipts and payment of cash of a company. It has three sections which are; cash receipts, cash payment and financing section.

Schedule of cash receipts:

A schedule of cash receipts is expected inflows of cash from the customers on sales during budgeted period.

Schedule of cash payments:

A schedule cash payment is concerned with the expected outflow of cash from a company for expenses like purchase of direct materials, direct labors, manufacturing expenses, interest or dividend payment and etc.

To determine:

Preparation of cash budget for January, February and March