CASH-BUDGET-2 Perez Company has a beginning balance of cash on April 1 of $20,000. Cash collections for April, May and June are expected to be $90,000, $135,000 and $90,000 respectively. Payments for direct materials for the three month period will be $40,000, $50,000, and $45,000 Name Box Direct labor costs for April, May and June are likely to be $40,000, $40,000 and $60,000 respectively. Factory overhead costs for the three month period are estimated to be $22,500, $22,500, and $25,000. Note: The factory overhead costs include factory depreciation of $2,500 each month. Selling and Administrative costs for the three months are $15,000 each month. The company plans to sell marketable securities in June in the amount of $70,000. Perez Company has a line of credit which allows the company to borrow up to $25,000 of cash, in $1,000 increments. The company plans to maintain a minimum cash balance of $20,000 each month. On April 1, Perez borrows $25,000 on a 3-month 6% note. The interest amount will be 25,000*.06*3/12=$375. CASH BUDGET APRIL MAY JUNE Beginning Cash Balance 20,000 Cash Receipts: Collections from Customers Sale of Securities Total Cash Available 20,000 Cash Payments: Direct Materials Direct Labor Factory Overhead Selling and Admin. Expenses Total Payments Excess or Deficiency* Financing Borrowing (show as positive) Repayments with Interest Ending Cash Balance 20,000 0 0 20,000 0 Show repayment as negative. AMJ 100 000 110 0 0 0 000 000 000 000 000 0 00 0 0 1 0