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Calculating the Cash Budget

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Attached are some important figures from the budget of Big Blast, Inc., for the second quarter of 2000.

The company predicts that 5% of its credit sales will never be collected, 35% of its sales will be collected in the month of the sale, and the remaining 60% will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2000, credit sales were 275,000. Using this information, complete the attached cash budget.

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