Relevant data from the operating budget of The Framers are:

Other data:

• Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2.

• Dividends of $500 will be paid in May

• The beginning cash balance was $50,000 and a required minimum cash balance is $10,000.

• Prepare a cash budget for the first two quarters of the year.

Transcribed Image Text:

Sales Direct material purchases Direct labor Manufacturing overhead Selling and administration Depreciation included in selling and administration Collections Cash payments Cash received: other Dividend Quarter 1 $33,948 25,312 29,948 9,322 19,283 950 34,324 29,349 8,000 0 Quarter 2 $76,482 26,423 24,328 10,299 19,238 800 76,938 20,937 500 500