Create a combined cash budget for April and May

All amounts are in dollars ($). Description January February March April May June July Cash Collected (actual cash collections) 26,00 27,000 25,000 31,000 24,000 26,000 19,000 Direct Material Purchases 11,000 13,000 16,000 14,000 10,000 12,000 10,000 Salaries and Wages 11,400 12,600 12,400 12,200% 12,400 12,300 12,500 All Selling Costs 300 100 100 200 200 300 200 Fixed Admin & Equipment Costs (includes $300 in depreciation) 1,800 6,100 2,900 3,000 2,800 1,900 2,700 -------- -- --- - SESSE ESERCE Disbursement Timing: Direct Materials are paid for in the month following the purchase. Salaries and Wages are paid half in the month earned and half in the month following. All other costs are paid in the month incurred. Bank information: Ending Cash Balance on March 31 is $4,000. The company requires a minimum cash balance of $3,000. The bank requires the company to borrow in increments of $1,000 at 12% annual interest rate. The company may borrow from this operating line at any time and pay back the balance plus interest at any time. At the current time the company has no outstanding loans