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Candice Inc. provides you with the following budgeted information for two months in year 2019: March April Sales $620,000 $695,000 Manufacturing Costs 210,000 310,000 Capital
Candice Inc. provides you with the following budgeted information for two months in year 2019:
March | April | |
Sales | $620,000 | $695,000 |
Manufacturing Costs | 210,000 | 310,000 |
Capital Expenditures* | 90,000 | 50,000 |
General and Administration Costs (including amortization) | 60,000 | 125,000 |
*includes training programs, machines and buildings |
Expectations:
- Cash sales represent 5% of total sales
- All sales on account are collected in the following month
- 50% of Marchs $90,000 worth of capital expenditures is to be paid at the end of March. The remainder is to be paid in the following month. April's capital expenditure will be paid in May.
- Monthly amortization represents 20% of general and administration costs
- Manufacturing costs and general and administration costs are to be paid in the month in which they are incurred
- Dividends of $7,000 are expected to be declared in March and paid in April
- Candice Inc. obtains the minimum financing needed to ensure at least a $6,000 cash balance at the end of the month through a bank loan. Assume that any amount taken out of the bank loan may be repaid only at year end.
As of March 1
Cash | $21,000 |
Accounts Receivable* | 154,000 |
Inventory | 120,000 |
Long-Term Assets | 110,000 |
Accumulated Depreciation | 8,000 |
Accounts Payable | 8,000 |
Dividends Payable (in March) | 3,000 |
Notes Payable | 265,000 |
Stockholder's Equity | 119,000 |
*Comprised only of sales on account incurred in February |
Do not enter dollar signs or commas in the input boxes. Use the negative sign for negative values. Prepare a cash budget for March and April.
Candice Inc. Cash Budget for March and April | ||
March | April | |
Opening Cash Balance | $Answer | $Answer |
Receipts: | ||
Cash from sales | $Answer | $Answer |
Collection from customers | $Answer | $Answer |
Total cash available | $Answer | $Answer |
Disbursements: | ||
Manufacturing costs | $Answer | $Answer |
General and admin. costs | $Answer | $Answer |
Capital Expenditures | $Answer | $Answer |
Dividend Payment | $Answer | $Answer |
Total Cash Payments | $Answer | $Answer |
Cash Excess (Deficit) | $Answer | $Answer |
Financing Requirements: | ||
Notes Payable | $Answer | $Answer |
Loan Repayment | ||
Ending Cash Balance | $Answer | $Answer |
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