Expected unit sales $($frames$)$ for the upcoming months follow:

$\backslash$table$[[$March$,295],[$April$,290],[$May$,340],[$June$,440],[$July$,415],[$August$,465]]$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}20$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$9,000($ $$750$ per month$)$ for expected production of $5,000$ units for the year. Selling and administrative expenses are estimated at $$800$ per month plus $$0\mathrm{.}50$ per unit sold.

Iguana, Incorporated, had $$11,800$ cash on hand on April $1.$ Of its sales, $80$ percent is in cash. Of the credit sales, $50$ percent is collected during the month of the sale, and $50$ percent is collected during the month following the sale.

Of direct materials purchases, $80$ percent is paid for during the month purchased and $20$ percent is paid in the following month. Direct materials purchases for March $1$ totaled $$2,600.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$190$ in depreciation. During April, Iguana plans to pay $$3,400$ for a piece of equipment.

PA$8-3($Algo$)$ Preparing Cash Budget $[$LO $8-4]$

Required:

Compute the budgeted cash receipts for Iguana.

Compute the budgeted cash payments for Iguana.

Prepare the cash budget for Iguana. Assume the company can borrow in increments of $$1,000$ to maintain a $$11,000$ minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter.