eBook Calculator Printiem Cash Budget The controller of Shoe Mart Inc. asks you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: January February March Sales $137,000 $162,000 $225,000 Manufacturing costs 58,000 70,000 81,000 Selling and administrative expenses 40,000 44,000 50,000 Capital expenditures 54,000 The company expects to sell about 15% of its merchandise for cash of sales on account, 70% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in June, and the annual property taxes are paid in October. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. All sales and administrative expenses are paid in the month incurred. Current assets as of January 1 include cash of $52,000, marketable securities of $74,000, and accounts receivabe of $153,000 ($120.000 from December sales and $33,000 from November sales), Sales an account in November and December were $110,000 and $120,000, respectively. Current liabilities as of January 1 include a 559,000, 12%, 90-day note payable due March 20 and $10,000 of secounts payable incurred in December for manufacturing casts. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $4,100 in dividends will be received in January. An estimated income tax payment of $19.000 will be made in February. Shoe Mart's regular quarterly dividend of $10,000 is expected to be declared in February and paid in March. Management desires to maintain a minimum cash balance of $41,000. Required: 1. Prepare a monthly cash budget and supporting schedules for January, February, and March. Enter an increase the months cash borce or an excess cash amount a prouitive rumber Enter a decrease in the month's cash balance or a cash deficiency as a negative number. Assume 360 days per year for interest calculations March Shoe Mart Inc. Cash Budget For the Three Months Ending March 31 January February Estimated cash receipts from Cash sales 20.550 24.300 Collection of accounts receivable 113,000 X 41.100X Dividends 4.100 0 33.750 95,500 Total cash receipts Estimated cash payments for: Manufacturing costs Selling and administrative expenses -58.000 XS 70.000 x 40,000 44,000 50,000 Checks My Work Previous All work saved Save and Exit Submit Assignment for Grading ebook Calculator Printem Sanay 1. Prepare a monthly cash budget and supporting schedules for January February, and March, Enter an increase in the month's cash bane or an excess cash amount as a positive number. Enter a decrease in the months cash balance of cash deficiency as a negative number. Assume 360 days per year for interest calculations Shoe Mart Inc Cash Budget For the Three Months Ending March 31 February March Estimated cash receipts from: Cash sales 20,50 $ 24.300 $ 33.750 V Collection of accounts receivable 113,000 X 41 100 X 95.900X Dividends 4.100 Total cash receipts Estimated cash payments for Marufacturing costs -511000 x -70,00nXS Selling and administrative expenses 40.000 4.000 50.000 Capital expenditures o 14,000 Other purposes! Nate payable including interest) 71070 Income tax 19.000 So Dividends 10.000 M Total cash payments Cash increase (decrease) Cash balance at heginning of month Cash balance at end of munth Minimum cash balance Excess deficiency Fedt Clucky Wark Add ach month's cash sales to the month's collections and dividends received. Subtract each month's cach payments. Add the cash increase so lor subtract the cash decrease from the beginning cash balance. Subtract the minimum cash balance required. Check My Work Previous