E9-31A (similar to) Question Help Wonderland Manufacturing produces a variety of industrial valves. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur. A (Click the icon to view the expected transactions.) Requirement 1. Prepare a combined cash budget for Wonderland Manufacturing for the third quarter, with a column for each month and for the quarter total. (Leave unused cells blank. Use parentheses or a minus sign for negative ending cash balances.) Wonderland Manufacturing Combined Cash Budget More Info September For the Months of July through September July August $ 32,000 $ 24,000 97,000 158,000 Beginning balance of cash Cash collections 129,000 182,000 Total cash available (142,000) (109,000) Cash collections from sales in July August, and September, are projected to be $97,000, $158,000, and $122,000 respectively b. Cash payments for the upcoming third quarter are projected to be $142,000 in July, $109,000 in August, and $136,000 in September. c. The cash balance as of the first day of the third quarter is projected to be $32,000. d. Wonderland Manufacturing has a policy that they must maintain a minimum cash balance of $24,000 The company has a line of credit with the local bank that allows it to borrow funds in months that it would not otherwise have a minimum balance of $24,000. If the company has more than $24,000 at the end of any given month, it uses the excess funds to pay off any outstanding line of credit balance. Each month, Wonderland Manufacturing pays interest on the prior month's line of credit ending balance. The actual interest rate that Wonderland Manufacturing will pay floats since it is tied to the prime rate. However, the interest rate paid during the budget period is expected to be 1% of the prior month's line of credit ending balance (if the company did not have an outstanding balance at the end of the prior month, then Wonderland Manufacturing does not have to pay any interest). All line of credit borrowings taken or paid off on the first day of the month. As of the first day of the third quarter, Wonderland Manufacturing did not have a balance on its line of credit (13,000) 73,000 Cash payments Ending cash balance before financing Financing: Borrowings Repayments Interest Payments 37.000 (37,000 (370) Print Done $ 24.000 $ 35,630 Ending cash balance Check Answer Enter any number in the edit fields and then click Check Answer. Clear All part remaining MacBook Air