The Flaming Wok Restaurant expects revenues and payments for the first five months of the year   to be:   Sales Payments   January $14,000 $18,000   February 20,000 21,300   March 26,000 19,100   April 22,000 22,400   May 18,000 14,700   Seventy percent of the company's sales are on credit

The Flaming Wok Restaurant expects revenues and payments for the first five months of the year

to be:

Sales Payments

January $14,000 $18,000

February 20,000 21,300

March 26,000 19,100

April 22,000 22,400

May 18,000 14,700

Seventy percent of the company's sales are on credit. Past experience shows that 40 percent of

accounts receivable are collected in the month after sale, and the remainder are collected in the

second month after sale.

The Flaming Wok pays its payments in the following month. The cash balance on March 1st was

$2,000, which is also its minimum required cash balance. There is an outstanding loan of $2,000

on March 1.

Required:

1. Prepare a schedule of cash receipts for March, April and May.

2. Prepare a cash budget for March, April and May.