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Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 105,200 units.

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Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 105,200 units. The following unit sales of the transmissions are expected during the rest of the year second quarter, 263,000 units, third quarter, 410,000 units, and fourth quarter, 255,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture, ELECTRO COMPANY Production Budget Second and Third Quarters Second Quarter Third Quarter Required units of available production Units to be produced dinaca Kayak Co, budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Receipts 5525,000 410,500 458,000 payments $466,300 351,800 521.000 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150.000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100.000 at January 1 Prepare monthly cash budgets for January, February, and March (Negative balonces and Loon repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January February, and March January February S 50,000 Beginning cash balance Total cash available Preliminary cash balance Ending cash balance Loan balance $ 100.000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

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