Peanut Ltd. sells a single product at a price of $25 per unit. This product
costs Peanut $15 per unit to manufacture.
Peanut's actual sales over the past month (December) and projected sales over the next four months (January to April) are as follows:
December 200,000 units March 250,000 units
January 175,000 units April 275,000 units
February 150,000 units
50% of sales are for cash, and the remaining 50% are on credit and paid in full in one month's time
Units are produced one month in advance of sales, and the costs of production are paid 30% in the month of production and 70% in the month following production.
Prepare Peanut's cash budget for the months of January, February and March.