Cash Budget for Month (SIA) The treasurer of the Househall Company states, “Our monthly financial budget shows me our cash surplus or deficiency and assures me that an unexpected cash shortage will not occur.”

The following revenue and cost information is available for the month of May, 19_3:

Sales forecast (terms, 2%, 10 days, net 30) $650,000 Production requirements:

Raw materials $301,000 Direct labor 85,000 386,000 Overhead and other charges:
Indirect labor $ 34,000 Real estate taxes 1,500 Depreciation ae 25,000 Utilities 1,500 Wage benefits 9,000 Fire insurance : 1,500 Amortization of patents 5,000 Spoilage of materials 1,500 79,000 Sales salaries 45,000 Administrative salaries 15,000 Raw-materials inventory will increase by $6,000; other inventories are not expected to change.
Monthly charges for wage benefits include:
Unemployment insurance (payable monthly) $1,350 Canada pension plan (payable monthly) 820 Holiday pay (May holidays will require $2,040) 1,100 Company pension fund (includes one-twelfth of a $10,800 adjustment paid in January, 195) 5,000 Group insurance (payable quarterly with a payment due in February) 730 Raw-material purchases are paid net 30 days, and $320,000 was outstanding at the end of April, 19_5.
Accrued wages on April 30, 19-5, were $11,000. All May payroll amounts will be paid within the month of May.
Customer discounts on sales (2% ten days) are normally given on 50%
of the collections from the prior month’s sales. Freight-out included in April sales amounted to $1,000 and is payable the next month.
Fire insurance premiums are payable in January in advance.
Real estate taxes are paid in August each year.
Utilities are billed and paid within the month.
Accounts receivable on April 30,

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