LISA LEE Ltd. prepares a monthly cash budget. Here is income statement data for the next two months, May and June of 2021:

May June

Sales $600,000 $750,000

Direct Materials Purchases 180,000 220,000

Direct Labour 85,000 105,000

Manufacturing Costs* 72,000 79,000

Selling and Admin Exp. 75,000 80,000

*Includes $8,000 Depreciation Expense in EACH month.

All sales are on credit. Collections of sales are estimated to be 40% in the month of sale, and the balance in the month following the sale. Direct material purchases are paid as follows: 55% in the month of sale, and the balance in the month after the sale. All other costs requiring payment are paid in the month of sale.

Sales in March, 2021: $400,000; for April, 2021: $520,000.

Direct materials purchases in March, 2021: $120,000; for April, 2021: $152,000 :.

Other incoming cash: May, interest receivable, $4,000; June, proceeds from sale of securities, $5,000.

Other outgoing cash: May only, payment of cash for land, $36,000.

Cash balance is expected to be $40,000 as of Jan 1, 2021. The companys policy is to always start each month with at least $30,000 in cash.

REQUIRED: prepare a cash budget for LISA LEE Ltd., for May and June, 2021. Use the template given below. Note that just because spaces have been provided for answers, you do not have to use all of them. (25 marks)

LISA LEE Ltd. Cash Budget for May and June, 2021

May May June

Opening balance $ 30,000 ________

Cash from March. sales ________ ________

Cash from April. sales ________ ________

Cash from May sales ________ ________

Cash from June Sales ________ ________

Materials purchases from March ________ ________

Materials purchases from April ________ ________

Materials purchases from May ________ ________

Materials purchases from June ________ ________

Direct Labour ________ ________

Manufacturing Costs ________ ________

Selling and admin costs ________ ________

Other cash Inflows ________ ________

Other cash outflows ________ ________

Financing (if needed) ________ ________

Closing Balance ________ ________