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Administrative salaries 2 1 , 0 0 0 Interest on bonds 1 5 , 0 0 0 Property taxes - Sales commissions 4 , 4

Administrative salaries 21,000
Interest on bonds 15,000
Property taxes -
Sales commissions 4,400
Total CDs for Other Expenses $77,400
Total Cash Disbursements $383,160 $- $-
Summary Cash Budget
20x2
January February March Quarter 1
Cash Receipts $413,000
Cash Disbursements 383,160
Change in cash due to operations $29,840
Proceeds from sale of
marketable securities 15,00015,000
Proceeds from bank loan 100,000100,000
Purchase of equipment (125,000)(125,000)
Repayment of bank loan $(100,000) $(100,000)
Interest on bank loan (2,500.00)(2,500.00)
Payment of dividends (50,000.00)(50,000.00)
Change in cash balance during Quarter 1
Cash balance, January 1,20x235,000
Cash balance, March 31,20x2
Analysis of short-term financing needs:
Projected cash balance at December 31,20x1 $35,000
Less: Required minimum cash balance 25,000
Cash Available for equipment purchase 10,000
Proceeds from sale of marketable securities 15,000
Cash available 25,000
Less: Cost of equipment 125,000
Required short-term borrowing $(100,000)
Observer Company
Budgeted Income Statement
For the First Quarter 20x2
Sales Revenue
Less: Cost of Goods Sold
Gross Margin
Less: Selling & Administrative Expenses:
Sales salaries
Sales commissions
Advertising & promotion
Administrative salaries
Depreciation
Interest on bonds
Interest on short-term loan
Property taxes
Total S & A Expenses $-
Net Income $-
Observer Company
Budgeted Balance Sheet
3/31/20x2
Assets:
Cash
Accounts Receivable
Inventory
Building & Equipment (net of accumulated depreciation)
Total Assets -
Liabilities and Stockholder's Equity:
Accounts payable
Bond interest payable
Property taxes payable
Bonds payable (due in 20x6)
Common Stock
Retained Earnings
Total Liabilities & Stockhoder's Equity $-

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