6. The OBrien Vineyards makes and sells an awarding Pinot Noir. Each bottle of Pinot Noir sells for $24 and has a unit variable cost of $14. Here is what you will need to put together my Cash Budget Maintains a 12% (1% per month) open line of credit for $75,000 Maintains a minimum cash balance of $20,000 Borrows on the first day of the month and repays loans last day of the next month (for example, if you were to borrow for July, which is really to meet August 1 beginning balance, you would repay end of Sept. You have use of the funds for 2 full months). Pays a cash dividend of $10,000 in July Purchased $38,000 of oak barrels in August and $48,400 of oak barrels in September both purchases of equipment paid for in cash. Cash balance at July 1 is $22,500 I have summarized the following budget information for you July August September Cash Collections 70,000 88,000 129,650 Cash Disbursements: Materials 18,000 19,500 17,700 Direct Labor 8,000 9,200 8,500 MOH 24,000 27,000 25,000 Selling and Admin 18,000 19,300 18,850 Prepare the Cash Budget July August September Beginning Cash add: Cash Collections Total Cash Available less: Cash Disbursements Materials Direct Labor MOH Selling and Admin Equipment Purchase Dividend Total Disbursements Excess (Deficiency) Financing: Borrowing Repayments Interest Total Financing Ending Cash Balance