Pink Martini Corporation is projecting a cash balance of $30,000 in its December 31, 2016, balance sheet.

Question:

Pink Martini is projecting a cash balance of $30,000 in its December 31, 2016, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2016 shows total collections of $180,000. The schedule of expected payments for direct materials for the first quarter of 2016 shows total payments of $41,000. Other information gathered for the first quarter of 2016 is as follows: sale of equipment $3,000; direct labour $70,000, manufacturing overhead $35,000; selling and administrative expenses $45,000; and purchase of securities $14,000. Pink Martini wants to maintain a balance of at least $25,000 cash at the end of each quarter.
Instructions
Prepare a for the first quarter.
Cash Budget
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