1 its Following are the budgeted income statements for the second quarter of 2022 for SeaTech Incorporated Sales Cost of goods sold" Gross profit Operating expenses" Operating income etlook Ask Print references April $ 252,000 172,800 $ 79,200 39,600 May $ 306,000 205,200 $ 100,800 45,000 $ 39,600 $ 55,800 June $ 342,000 226,800 $ 115,200 48,600 $ 66,600 Includes all product costs (ie., direct materials, direct labor, and manufacturing overhead) Includes all period costs (.e., selling, general, and administrative expenses). Check my work The company expects about 30% of sales to be cash transactions. Of sales on account, 60% are expected to be collected in the first month after the sale is made, and 40% are expected to be collected in the second month after sale. Depreciation, insurance, and property taxes represent $21,600 of the estimated monthly cost of goods sold and $14,400 of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August. Of the remainder of the cost of goods sold and operating expenses, 80% are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month. Current assets as of April 1, 2022, consist of cash of $25,200 and accounts receivable of $269,640 ($188,748 from March credit sales and $80,892 from February credit sales). Current liabilities as of April 1 consist of $32,400 of accounts payable for product costs incurred in March; $8,280 of accrued liabilities for operating expenses incurred in March; and a $72,000, 15%, 120-day note payable that is due on April 17, 2022 Book Ask Pret rencos An estimated income tax payment of $72,000 will be made in May. The regular quarterly dividend of $28,800 is expected to be declared in May and paid in June. Capital expenditures amounting to $30,960 will be made in April. Required: a. Complete the monthly cash budgets for the second quarter of 2022 using the following format. Note that the ending cash balance for June is provided as a check figure. b. Assume that management of SeaTech Incorporated desires to maintain a minimum cash balance of $19,000 at the beginning of each month and has arranged a $100,000 line of credit with a local bank at an interest rate of 11% to ensure the availability of funds Borrowing transactions are to occur only at the end of months in which the budgeted cash balance would otherwise fall short of the $19,000 minimum balance. Repayments of principal and interest are to occur at the end of the earliest month in which sufficient funds are expected to be available for repayment Required A Required B 10 points eBook Ask Pont References Complete the monthly cash budgets for the second quarter of 2022 using the following format. Note that the ending cash balance for June is provided as a check figure. Note: Use 360 days year for calculations. Do not round intermediate calculations. Round your final answers to the nearest whole dollars. Beginning cash balance - Cash Receipts: SEATECH INCORPORATED Cash Budget For the months of April, May, and June 2022 From cash sales made in current month From credit sales made in February From credit sales made in March April May June $ 25,200 From credit sales made in April From credit sales made in May Total cash available $ 25,200 $ 0 $ 10 points eBook Ash Print References Cash Disbursements: For cost of goods sold/operating expenses incurred in March For cost of goods sold/operating expenses incurred in April For cost of goods sold/operating expenses incurred in May For cost of goods sold/operating expenses incurred in June For payment of note payable and interest For capital expenditures For payment of income taxes For payment of dividends Total disbursements Ending cash balance $ 0 $ 0 $ $ 25,200 $ Required A Required B > 0 39.600 10 points Assume that management of SeaTech Incorporated desires to maintain a minimum cash balance of $19,000 at the beginning of each month and has arranged a $100,000 line of credit with a local bank at an interest rate of 11% to ensure the availability of funds. Borrowing transactions are to occur only at the end of months in which the budgeted cash balance would otherwise fall short of the $19,000 minimum balance. Repayments of principal and interest are to occur at the end of the earliest month in which sufficient funds are expected to be available for repayment. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollars. Use 360 days year for calculations. Check my work April May June $ 25,200 eflook Ask Print References Beginning cash balance. Cash Receipts: - SEATECH INCORPORATED Cash Budget For the months of April, May, and June 2022 From cash sales made in current month From credit sales made in February From credit sales made in March From credit sales made in April From credit sales made in May Total cash available $ 25,200 $ 0 $ Show less & 10 points eBook Ask Print References Cash Disbursements: For cost of goods sold/operating expenses incurred in March For cost of goods sold/operating expenses incurred in April For cost of goods sold/operating expenses incurred in May For cost of goods sold/operating expenses incurred in June For payment of note payable and interest For capital expenditures For payment of income taxes For payment of dividends Total disbursements Excess (deficiency) of cash available over disbursements 25,200 $ $ 05 05 0 Borrowings Repayments Interest Ending cash balance $