Dalton manufacturing has a policy that the ending cash balance in each month must be at least $4,400. it has a line of credit with a local bank. the company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $125,000. the interest rate on these loans is 1% per month simple interest. the company eould pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. the company would also pay the accomulated interest at rhe end of the quarter ln the funds borrowed during the quarter.

Combined Cash Budget For the Quarter Ended March 31 Beginning cash balance Plus: Cash collections Total cash available \begin{tabular}{rrrrrr} \multicolumn{2}{c}{ January } & \multicolumn{2}{c}{ February } & \multicolumn{2}{c}{ March } \\ \cline { 2 - 5 }$4,460 & $ & 4,800 & $ & 5,100 \\ 77,230 & 82,800 & & 87,210 \\ \hline 81,690 & & 87,600 & & 92,310 \\ \hline \end{tabular} Less: cash payments: Direct material purchases Direct labor Manufanturina nuarhpart macte 48,5003,51022.00027,8243,8342316228,8643,60022.322 Manufacturing overhead costs Operating expenses Tax payment \begin{tabular}{rrr} 22,000 & 23,162 & 22,322 \\ 12,080 & 13,280 & 12,440 \\ & 10,800 & \\ \hline 5,800 & 11,600 & 15,800 \\ \hline 91,890 & 90,500 & 83,026 \\ \hline(10,200) & (2,900) & 9,284 \\ \hline \end{tabular} Financing: Plus: New borrowings 15,0008,000 Less: Debt repayments Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments Total financing Ending cash balance a. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c.Dalton Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). d.O1 each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs e. Most of the labor at the manutacturing facllity is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.03 . The direct labor rate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed. The direct tabor total cost for each of the upooming three months is as follows: f. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1,40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. g. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalton Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800. h.Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,000 for the entire quarter, which includes depreciation on new acquisitions. 1. Dalton Manufacturing has a policy that the eniing cash balance in each mnth must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $125,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes. Dalton Manufacturing Cash Collections Budget For the Quarter Ended March 31 Requirement 2. Prepare a production budget. (Hint: Unit sales = Sales in dollars Selling price Production Budget For the Quarter Ended March 31 Units to be produced Dalton Manufacturing Cash Payments for Direct Materials Budget Requirement 6. Prepare a cash payments budget for manufacturing overhead costs. (Round your answers to th Cash Payments for Manufacturing Overhead Budget For the Quarter Ended March 31 Requirement 7. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest Dalton Manufacturing Cash Payments for Operating Expenses Budget Requirement 8. Prepare a combined cash budget. (If an input field is not used in the table leave the inpl Dalton Manufacturing Combined Cash Budget \begin{tabular}{lrrr} Direct material purchases & 48,500 & 27,824 & 28,864 \\ Direct labor & 3,510 & 3,834 & 3,600 \\ Manufacturing overhead costs & 22,000 & 23,162 & 22,322 \\ Operating expenses & 12,080 & 13,280 & 12,440 \\ Tax payment & & 10,800 & \\ Equipment purchases & 5,800 & 11,600 & 15,800 \\ Total cash payments & 91,890 & 90,500 & 83,026 \\ Ending cash balance before financing & (10,200) & (2,900) & 9,284 \\ \hline \end{tabular} Financing: Equipment purchases Total cash payments Ending cash balance before financing Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments Total financing Ending cash balance