information in PA8-1. Iguana, Inc., had $10,800 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 $2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $150 in depreciation. During April, Iguana plans to pay $3,000 for a piece of equipment. Required: Prepare the following for Iguana for quarter 2: 1. Budgeted cash receipts. Include each month (April to June) as well as quarter 2 totals. 2. Budgeted cash payments. 3. Cash budget. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter. General information: Selling price of picture frames $ 25.00 Linear feet of bamboo required per frame 4 Cost of bamboo per foot $ 2.00 Hours required to build 0.50 Average hourly labor rate $ 12.00 Additional information: Ending finished goods inventory should be 40 percent of the next month's sales Ending direct materials inventory should be 30 percent of the next month's production Variable manufacturing overhead rate per unit produced Estimated annual fixed manufacturing overhead $ 0.30 $ 7,200 Expected units of production 4,000 Estimated monthly selling and administrative expenses: Fixed $ 650 Per unit sold $ 0.60 Expected number of frames sold in following months: March 275 April 250 May 300 June 400 July 375 August 425 Information for Problem PA08-03: Cash on hand at April 1 Percentage of sales in cash Percentage of credit sales collected during month of sale Percentage of credit sales collected in month following sale Percentage of direct material purchases paid in month purchased Percentage of direct material purchases paid in following month March 1 direct materials purchases Depreciation included in monthly fixed manufacturing overhead Amount expected to be paid for a piece of equipment Minimum cash balance required Borrowing increments $ 10,800 80% 50% 50% 80% 20% EA EA EA EA EA $ 2,000 $ 150 $ 3,000 $ 10,000 $ 1,000