14 saved out of Management for Fire Ltd. has budgeted the following: Monthly sales Cash payments for purchases of Inventory Selling and administrative expenses Additional information: February March April $200,000 $215,000 87,000 83,000 67,000 64,000 Welcome $230,000 90,000 Multiple Choice 1 2 65,000 The Company has already prepared a schedule of cash collections and expects that cash collected from all cash and credit sales will be $185,000 in March and $200,000 in April. Multiple Choice 9 10 11 Inventory purchases are paid for in the month after they are incurred. Selling and administrative expenses are paid in the month incurred and include monthly depreciation of $4,000. The company is expected to buy equipment costing $145,000. They will pay a cash deposit of $65,000 in March, $12,000 in April, and the remaining balance in June. Dividends of $35,000 will be declared and paid in April. Cash balance on March 1st is $8,000. minimum balance of $6,000 is required at the end of March and April and the company Cash Budget Direct Materials 15 16 17 Flexible Budget 18 19 20 26 27 28 29 ROI and RI Ana