Instructions The treasurer of Calico Dreams Company has accumulated the following budget information for the first two months of the coming fiscal year: March Sales $450,000 290,000 April $520,000 350,000 Manufacturing costs Selling and administrative expenses Capital additions 41,400 46,400 250,000 The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are collected in full in the month of the sale and the remainder in the month following the sale. One-fourth of the manufacturing costs are paid in the month in which they are incurred and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the monthly selling and administrative expenses. Insurance is paid in February, and property taxes are paid yearly in September. A $40,000 installment on income taxes is to be paid in April. Of the remainder of the selling and administrative expenses, one-half is to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are paid in March. Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are accounts payable of $121,500 (5102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $25,000 Required: Prepare a monthly cash budget for March and April. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons () on the statement. Negative amount should be indicated by the minus sign. Prepare a monthly cash budget for March and April. Refer to the lists of Accounts in the information given, Labels, and Amoun should be indicated by the minus sign. Calico Dreams Company Cash Budget For the Two Months Ending April 30 1 March April 2 Estimated cash receipts from: 3 Cash sales $157,500.00 $182,000.00 4 Collections of accounts receivable 285,000.00 328,900.00 5 $442,500.00 $510,900.00 Total cash receipts 6 Estimated cash payments for: 7 Manufacturing costs Selling and administrative expenses $174,500.00 $305,000.00 8 37,000.00 37,500.00 9 Capital additions 250,000.00 10 Income taxes 40,000.00 11 $461,500.00 $382,500.00 $(19,000.00) $128,400.00 45,000.00 26,000.00 Total cash payments 12 Cash increase (decrease) 15 Cash balance at beginning of month 14 Cash balance at end of month 15 Minimum cash balance 16 Excess (deficiency) $26,000.00 $154,400.00 25,000.00 25,000.00 $1,000.00 $129,400.00 Instructions The treasurer of Calico Dreams Company has accumulated the following budget information for the first two months of the coming fiscal year: March Sales $450,000 290,000 April $520,000 350,000 Manufacturing costs Selling and administrative expenses Capital additions 41,400 46,400 250,000 The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are collected in full in the month of the sale and the remainder in the month following the sale. One-fourth of the manufacturing costs are paid in the month in which they are incurred and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the monthly selling and administrative expenses. Insurance is paid in February, and property taxes are paid yearly in September. A $40,000 installment on income taxes is to be paid in April. Of the remainder of the selling and administrative expenses, one-half is to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are paid in March. Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are accounts payable of $121,500 (5102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $25,000 Required: Prepare a monthly cash budget for March and April. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to enter colons () on the statement. Negative amount should be indicated by the minus sign. Prepare a monthly cash budget for March and April. Refer to the lists of Accounts in the information given, Labels, and Amoun should be indicated by the minus sign. Calico Dreams Company Cash Budget For the Two Months Ending April 30 1 March April 2 Estimated cash receipts from: 3 Cash sales $157,500.00 $182,000.00 4 Collections of accounts receivable 285,000.00 328,900.00 5 $442,500.00 $510,900.00 Total cash receipts 6 Estimated cash payments for: 7 Manufacturing costs Selling and administrative expenses $174,500.00 $305,000.00 8 37,000.00 37,500.00 9 Capital additions 250,000.00 10 Income taxes 40,000.00 11 $461,500.00 $382,500.00 $(19,000.00) $128,400.00 45,000.00 26,000.00 Total cash payments 12 Cash increase (decrease) 15 Cash balance at beginning of month 14 Cash balance at end of month 15 Minimum cash balance 16 Excess (deficiency) $26,000.00 $154,400.00 25,000.00 25,000.00 $1,000.00 $129,400.00