cyrus brown manufacturing cbm case 496729

To avoid any uncertainty regarding his business’ financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months:
March $100,000
April $275,000
May $320,000
June $450,000
July $700,000
August $700,000
September $825,000
October $500,000
November $115,000

He has also gathered the following collection estimates regarding the forecast sales:
Payment collection within the month of sale = 25%
Payment collection the month following sales = 55%
Payment collection the second month following sales = 20%
Payments for direct manufacturing costs like raw materials and labor are made during the month that follows the one in which such costs have been incurred. These costs are estimated as follows:
March $187,500
April $206,250
May $375,000
June $337,500
July $431,250
August $640,000
September $395,000
October $425,000
Additional financial information is as follows:
Administrative salaries will approximately amount to $35,000 a month.
Lease payments around $15,000 a month.
Depreciation charges, $15,000 a month.
A one-time new plant investment in the amount of $95,000 is expected to be incurred and paid in June.
Income tax payments estimated to be around