Company needs a cash budget for the month of April 2020. The companys controller has provided you with the following information and assumption.

a. The 4/1/2020 cash balance is expected to be $14000

b. all sales are on account. Credit sales are collected over a three month period - 50% in the month of sale. Actual sales for Feb and March were $100,000 and $90,000, respectively. Aprils sale are budgeted at $110000

C. Investments in marketable securities are expected to be sole for $25,000 during the month of April.

D. The controllwr estimates that cash will be paid for dirext materials totalinh $35,400 during the month of April.

E. During April, direct labor costs are estimated to be $19,000

F. Manufacturing overhead is estimated to be $76000. Further, the controller estimates that approx. 10% of the manufacturing overhead is depreciation on the factory buildinh amd equipment.

G. Selling and Administrative expense are budgeted at $22,000 for April. Of this amount, $7,000 is for depreciation.

H. Durinh April, Company plans to buy a new truck costing $25,000. The company will pay cash for the truck.

i. Company owes $35,000 in income tax, which must be paid in April

J, Company must maintain a min. cash balance of $10,000. To bolster the cash position as needed, an open line of credit is available from the bank. There is no current balance on the credit line. The credit line is limited to $100,000. (no interest on open balances)

Instructions:

1. Create a schedule showing the calculation of cash collection for April

2. Create a cash budget for the month of April. Make sure to indicate in the financinh section any borrowing that will be necessary durinh the month.

b. All sales are on account. Credit sales are collected over a three-month period50 percent in the month of sale, 35 percent in the month following sale, and 15 percent in the second month following sale. Actual sales for February and March were $100,000 and $90,000, respectively. April's sales are budgeted at $110,000. Investments in marketable securitine ara axnected to be sold for $25.000 during the month of Anril