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Candice Inc. provides you with the following budgeted information for two months in the current year. March April Sales $565,000 $705,000 Inventory Costs 240,000 310,000

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Candice Inc. provides you with the following budgeted information for two months in the current year. March April Sales $565,000 $705,000 Inventory Costs 240,000 310,000 Capital Expenditures 130,000 75,000 General and Administration Costs (including amortization) 55,000 115,000 Expectations: Cash sales represent 25% of total sales All sales on account are collected in the following month 55% of March's $130,000 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 Inventory costs and general and administration costs are to be paid in the month in which they are incurred Dividends of $9,000 are expected to be declared in March and paid in April Candice Inc. obtains the minimum financing needed to ensure at least a $9,000 cash balance at the end of the month through a note payable. Assume that any amount taken out of the bank loan may be repaid only at year end. As of March 1 Cash Accounts Receivable Inventory Long-Term Assets Acumulated Depreciation $27,000 181,000 55,000 85,000 9.000 Accounts Payable 8,000 Dividends Payable in March 5.000 Notes Payable 265,000 Shareholders Equity 104.000 Comprised only of sales on account incurred in February Do not enter dollar signs or comes to the cut bones Use the negative ion for any cash debit Prepare a cash budget for Marchand April Candice Inc Gasts Budget for March and April March April Opening Cash Balance Receipts Cash from sales Colections from customers Total cash available Contact lotursements: Total cash available Disbursements Inventory costs General and admin. costs $ Capital Expenditures Dividend Payment $ Total Cash Payments $ Cash Excess (Delion $ Financing Requirements Notes Payable Loan Repayment Ending Cash Balance Check

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