Expectations: - Cash sales represent 10% of total sales - All sales on account are collected in the following month - 60% of March's $110,000 worth of capital expenditures is to be paid at the end of March. The remainder is to be paid in the following month. April's capital expenditure will be paid in May. - Monthly amortization represents 20% of general and administration costs - Inventory costs and general and administration costs are to be paid in the month in which they are incurred - Dividends of $5,000 are expected to be declared in March and paid in April - Jessica Inc. obtains the minimum financing needed to ensure at least a $7,000 cash balance at the end of the month through a note payable. Assume that any amount taken out of the bank loan may be repaid only at year end. As of March 1 \begin{tabular}{|l|r|} \hline Cash & $19,000 \\ \hline Accounts Receivable* & 188,000 \\ \hline Inventory & 30,000 \\ \hline Long-Term Assets & 115,000 \\ \hline Accumulated Depreciation & 9,000 \\ \hline Accounts Payable & 12,000 \\ \hline Dividends Payable (in March) & 1,000 \\ \hline Notes Payable & 265,000 \\ \hline Shareholder's Equity & 108,000 \\ \hline \end{tabular} *Comprised only of sales on account incurred in February Prepare a cash budget for March and April. Jessica Inc. Cash Budget for March and April \begin{tabular}{|l|l|l|} \hline & \multicolumn{1}{|c|}{ March } & \\ \hline Opening Cash Balance & $ & April \\ \hline Receipts: & & $ \\ \hline Cash from sales & $ & $ \\ \hline Collection from customers & $ & $ \\ \hline Total cash available & $ & $ \\ \hline Disbursements: & $ & $ \\ \hline Inventory costs & $ & $ \\ \hline Ending Cash Balance & $ & $ \\ \hline General and admin. costs & $ & $ \\ \hline Total Cash Payments & $ & $ \\ \hline Cash Excess (Deficit) & $ & $ \\ \hline Dotes Payable Expenditures & $ & $ \\ \hline \end{tabular}