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Lindor Enterprises projects sales for the first three months of the year to be: $10,500 in January $12,100 in February, and $13,000 in March. Cash

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Lindor Enterprises projects sales for the first three months of the year to be: $10,500 in January $12,100 in February, and $13,000 in March. Cash receipts are expected to be: $8,450 in January, $11,760 in February, and $12,840 in March. They anticipate the following cash payments: Lindor Enterprises January February March Direct materials purchased $3,600 $4,100 $4,800 Direct labor costs $3,100 $4,100 $3,600 Depreciation on plant $500 $500 $500 Utilities for plant $650 $650 $650 Property taxes on plant $160 $160 $160 Depreciation on office $560 $560 $560 Utilities for office $360 $360 $360 Property taxes on office $160 $160 $160 Office salaries $2,900 $2,900 $2,900 All costs are paid in the month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1. Also, Lindor Enterprises beginning cash balance is $3,000 and they desire to maintain a minimum ending cash balance of $3,000. Lindor Enterprises borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on borrowed amounts is 6% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month Complete a Cash Budget for Lindor Enterprises, January February March Total Beginning cash balance Cash receipts Cash available Cash payments: Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing Borrowing Principal repayments Total effects of financing

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