INSTRUCTIONS: Prepare a Unisyms Company Cash Budget for March and April.

Regarding cash receipts: The company expects to sell about 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder in the next month. Sales are:

January Sales were $490,000

February Sales =$500,000

March Sales = $450,000

April Sales = $520,000

Regarding cash payments:

Manufacturing costs are expected to be $174,500 in March and $305,000 in April and are paid in the month incurred.

Selling and administrative expenses are expected to be $37,000 in March and $37,500 in April and are paid in the month incurred.

Income taxes of $40,000 are expected to be paid in April.

Capital additions of $250,000 are expected to be paid in March.

Regarding beginning balances:

Cash on March 1 is $45,000.

The minimum cash balance is $20,000.

Unisyms Company

Cash Budget

For the Two Months Ending April 30, 2009