Columbo Company
Cash Budget	Jan	Feb	Mar	Total
For the three months ended March 31, 2021
Cash receipts	$ 2,394,000	$ 2,818,800	$ 2,189,500	$ 7,402,300
Cash disbursements:
Cash required for materials				-
Cash required for Labor				-
Cash required for Fixed and Variable Overhead				-
Cash required for Fixed and Variable SG&A				-
Bank fees	150			150
Dividends	500,000			500,000
Taxes				-
Capital Equipment purchase				-
Total Disbursements	500,150	-	-	500,150
Cash excess/(deficiency)	1,893,850	2,818,800	2,189,500	6,902,150
Beginning cash				-
Bank borrowings				-
Bank repayments				-
Interest on bank borrowings				-
Ending cash	$ 1,893,850	$ 2,818,800	$ 2,189,500	$ 6,902,150

CASH BUDGET I need help!!

The Columbo Company manufactures a single model trench coat. Projected sales in units for the first 5 months of fiscal 2024 are as follows. January 18,000 February 20,000 March 15,000 April 8,000 May 6,000 Each trench coat sells for $145. All sales are on account. The Accounts Receivable balance on January 1, 2024 will be $45,000 and is considered 100% collectible in the month of January. The Cash balance on January 1, 2024 will be $48,000. 90% of Sales are collected in cash during the month of sale and 8% in the month after sale. The remaining 2% of Sales are considered Bad Debts. Bad Debt expense is recognized each month based on recorded Sales for that month. Bad Debts are considered Variable Costs. Finished Goods inventory shall be maintained at 80 percent of the following month's sales. Finished Goods inventory on January 1, 2024 will be 14,400 units. There are two Raw Materials utilized in the production of each trench coat as follows: Polyester: 5 yards per unit at a standard cost of $17 per yard. Lining: 3 yards per unit at a standard cost of $2 per yard. Raw Materials will be maintained at 10% of the material needed to fulfill the following month's production requirements. Inventory on hand January 1, 2024 will be 9,800 yards of Polyester and 5,880 yards of lining. All material purchases are paid in the month following the month of purchase. Accounts Payable at January 1, 2024 will be $938,400 all of which is related to material purchases to be paid in January. Direct Labor required to produce a single trench coat is 2 direct labor hours. The standard pay rate is $11 per hour. Labor is paid in the month the hours are worked. Overhead each month consists of both variable and fixed costs. Variable overhead is based on Direct Labor Hours. A summary of overhead costs is as follows: Monthly Fixed Component Variable Component ($ per Direct Labor Hour) Supplies $1.00 Utilities .75 Maintenance $3,000 .50 Wages & Benefits 52,000 Depreciation 12,000 Taxes 5,000 Other 10,000 2.00 Total $82,000 $4.25 All Overhead costs will be paid in the month they are incurred. Selling, General and Administrative (SG&A) expenses have both variable and fixed components. The variable component is based on the number of units sold. The cost behavior of SG&A is as follows: Monthly Fixed Component Variable Component ($ per unit sold) Salaries & Benefits $38,000 Quality costs $3.00 Depreciation 2,000 Advertising .75 Other 10,000 1.50 Total $50,000 $5.25 All SG&A costs will be paid in the month incurred. The Company has a $1 million line of credit with the bank. The Company is required to maintain a minimum balance of $50,000 at the bank at all times. Any bank borrowings must be made in increments of $1,000. Repayment of any borrowings will be budgeted when there is available cash. Interest on the line of credit is 5% paid monthly. A full month of interest will be budgeted to be paid for any month in which there is a loan balance. Borrowings are assumed to occur on the first of the month and repayments on the last day of the month. There will be no amounts drawn against the line on January 1, 2024. Bank fees of $150 per month are expected. This amount is NOT included in the SG&A budget as outlined above and are considered a fixed expense. Other specific cash expenditures are planned as follows: January: Dividends of $500,000. February: Tax payment of $655,000. March: The Company will purchase a new sewing system at a cost of $150,000 paid for in cash.