Cash Budget: Can someone help me what I did wrong?

My solution:

My solution for cash receipts and disbursements are correct, but my for my cash budget my repaying line of credit in June is incorrect and hence so is my ending balance as well. The solution says 13,400 for the the repaying line of credit and ending balance is 32,000, why is that that the case?

Note: the rest of the numbers shown above are correct.

Veronica's Cakes cooks and distributes cakes for every imaginable occasion. Veronica started the company in her house three years ago and has been surprised at her success. She is considering expanding her business and needs to prepare cash budgeting information to present to Westpac Bank to secure a loan. Veronica is not an accountant, so she has asked you to help her to prepare the necessary reports. Veronica's Cakes began the month with a bank balance of $20000. The budgeted sales for March to June are as follows: March June April $33 000 May $31000 Cash sales $28000 $35 000 Sales on account 58000 60 000 80 000 100 000 $135000 Total sales $86 000 $93 000 $111000 Veronica has found that she generally collects payment for credit sales over a two-month period. Typically, 70 per cent is collected in the month of sale and the remainder is collected in the next month. Her policy is to purchase inventory each month equivalent to 60 per cent of that month's budgeted sales. She thinks this provides her sufficient inventory levels to manage unanticipated changes in demand. Veronica's Cakes pays for inventory purchases in the month following purchase. Selling and administrative expenses are budgeted to be 40 per cent of each month's sales. One-half of the selling and administrative expenses is accounted for by depreciation on Veronica's manufacturing equipment. The company purchased additional manufacturing equipment in April at a cost of $28000. Veronica does not receive a salary, but she does pay herself dividends as company performance allows. The first quarter of the year was very profitable, so Veronica paid herself a dividend of $17 800 in April. Veronica wants to maintain a minimum cash balance of $10000 and has established a line of credit so she can borrow enough money to make up any shortfall. If the company has excess cash on hand at the end of a month (in excess of $10000), the line of credit will be paid back. Interest on the line of credit will not be paid until the end of the year. (Ignore any interest payments that the company would make on their borrowings.) REQUIRED a Prepare a cash receipts budget for April, May and June. b Prepare a cash disbursements budget for April, May and June. Prepare a summary cash budget for April, May and June. Cash Receipts Budget April May 33,000 31,000 June 35,000 42000 56000 = = 70 000 Cash Sales Cash on Account 70% Collected Current Month 30% Collected Next Month Cash Receipts Made During Month 17400 18000 24000 92400 105000 129000 Cash Disbursement April May 51600 55800 June 66600 Inventory Payment: 60% of sales (collected Next Month) selling and administration Expense Cash Disbursements Made during the month 18600 22200 27000 (70200) (78000) (93600) June 10,000 129000 (93600) (35,400) Cash Budget For Quarter ending in 30 June April May Beginning Balance 20,000 10,000 Cash Flows from operating activities Cash Receipts 92400 105000 Cash Disbursements (70200) (78000) (22,200) (27,000) Cash Flows from Investing Activities Manufacturing Equipment (28,000) Cash Flows from Financing Activities Dividends (17800) Ending Balance before line of credit (3600) 37000 Borrowing Line of credit 13600 Repaying Line of credit (27,000) Ending Cash Balance 10,000 10,000 45400