Homework Problem 4. Cash Budget - 24% The following information is budgeted for Angela's Arizona Adventure: Sales Merchandise Purchases Selling and Administrative Expenses April $200,000 $145,000 $60,000 May $230,000 $152,000 $60,000 June $280,000 $165,000 $60,000 All of Angela's sales are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $12,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid in the month incurred. Going forward, Angela wants to maintain a minimum cash balance of $50,000. Any amount that she needs to meet the minimum balance can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end. (No interest calculations are necessary.) 1 Required: Prepare Angela's cash budget for May. Angela expects to have $20,000 of cash on hand at the beginning of May. Homework Problem 1 - Cash Collections Budget 12% Death Star, Inc. manufactures frisbees. Seventy percent of Death Star's sales are collected in the month of sale, 25% in the month following sale, and 5% in the second month following sale. The following are budgeted sales data for the company: January February March April Total Sales $700,000 $500,000 $600,000 $400,000 Required: 1) What should be the budget for cash collections in April? (Show your work.) 2) What would be the Accounts Receivable balance on April 30