Hello! I need help putting together a Cash Budget

Ongaurd Inc. Product Cost is $25 per unit, including per unit cost of

$12.60 for materials (3lbs at $4.20 per lb.)

$10 for direct labor, (0.5 hours at a $20 direct labor rate per hour)

$1.80 for variable overhead

$0.60 for fixed overhead

Ongaurd Inc. sells its product for $40 per unit. They sold 20,000 units in June. Their sales projection for the following quarter is 23,000 units in July, 25,000 units in August, and 27,000 in September. They expect to sell 23,000 units in October.

The policy calls for the given month's ending finished goods inventory to equal 75% of the next month's expected sales units.

June 30 finished goods inventory is 17,250 units, which complies with the policy.

Company policy calls for a given month's ending raw materials ending inventory to equal 60% of the next month's expected materials needed for production.

June 30 raw materials inventory is 44,100 pounds of materials, which complies with the policy. The company expects to have 46,350 pounds of materials inventory on September 30.

Fixed overhead consists of $7,000/per month for depreciation and $8,000 per month for rent.

Ongaurd, Inc., sells its product for $40 per unit. They sold 20,000 units in June. Their sales projection for the following quarter is 23,000 units in July, 25,000 units in August, and 27,000 in September. They expect to sell 23,000 units in October.

Ongaurd Inc. sales representatives are paid commissions equal to 9% of sales and are paid in the month of the sales.

The sales manager's monthly salary will be $5,000 in July and August and will increase by 5% in September.

Ongaurd Inc.'s monthly general and administrative expenses include $10,000 in administrative salaries and 0.3% monthly interest on the long-term note payable. The long-term note payable has a balance of $500,000 on June 30. Creasy is not budgeting any additional borrowing or repayment of the note during the budgeted quarter.

Ongaurd Inc. expects 10% of sales to be collected in cash from the customer immediately and 90% on credit. Credit sales are always paid in full in the following month.

All direct materials purchases are on credit and are paid in full in the following month. No other payables arising from any other transactions.

As of June 30, the Accounts Receivable balance is $720,000. The Accounts Payable balance is $308,700.

The minimum ending cash balance for all months is $100,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum.

Short-term notes require an interest payment of 0.5% at each month's end (before repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.

The company expects to declare and pay a dividend of $80,000 in July.

The company does not expect to make any payments for Income Taxes in the budgeted quarter.

Equipment purchases of $25,000 are scheduled for September. No disposals of fixed assets are anticipated.

Ongaurd Inc. estimates Income Tax at a rate of 22% of net income before taxes.

Below is the Balance Sheet for Ongaurd Inc. as of June 30. Use the information from the problems above to complete the Budgeted Balance Sheet as of September 30.

Hint! Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings