accounting principles 2, chapter 6-8

Atlas is a manufacturer of sketching pads. The following information is available from the company's budgets: Selling 8 Administrative Manufacturing Direct Materials Cash Receipts Expenses Overhead Direct Labor Purchases April $240,000 $92,000 $50,400 $43,200 $74,400 May $255,000 $82,000 $52,800 $45,900 $79,050 June $275,000 $77,000 $56,000 $49,500 $85,250 ' Manufacturing overhead includes depreciation of $12,000 per month (this a non-cash expense). All expenses including material purchases are paid in the month they are incurred. Cash at the beginning of the period (April 1) was $20,000. The company wants to maintain a minimum cash balance of $20,000. There were no loans outstanding on April 1. The line of credit with the bank allows for borrowings and repayments in $1,000 increments. If the loan is paid off by the end of the quarter, there is no interest. a. Prepare monthly cash budgets for the 2nd quarter. (Deductible values and negative values should be indicated with minus sign.) Beginning cash balance Plus: Budgeted cash receipts Less: Budgeted cash payments for: Selling 8; administrative expenses Manufacturing overhead Direct labor Direct materials purchases Cash balance before nancing Cash borrowed or (repaid) Ending cash balance b. What is the amount of cash shown on the balance sheet at the end ofthe quarter