Martin Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Martin Manufacturing's operations:

Current Assets as of December 31 (prior year):
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . .	$4,500
Accounts receivable, net. . . . . . . . . . . . . . .	$47,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . .	$15,700
Property, plant, and equipment, net. . . . . . . . . . . .	$120,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . .	$42,400
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . .	$124,000
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . .	$23,100

Requirement 1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.

Martin Manufacturing
Cash Collections Budget
For the Quarter Ended March 31
	Month

	January	February	March	Quarter
Cash sales
Credits sales
Total cash collections

Requirement 2. Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.)

Martin Manufacturing
Production Budget
For the Quarter Ended March 31
	Month

	January	February	March	Quarter
Unit sales
Plus: Desired ending inventory
Total needed
Less: Beginning inventory
Units to produce

Requirement 3. Prepare a direct materials budget. (Round your answers to the nearest whole dollar.)

Martin Manufacturing
Direct Materials Budget
For the Quarter Ended March 31
	Month

	January	February	March	Quarter
Units to be produced
Multiply by: Quantity (pounds) of DM needed per unit
Quantity (pounds) needed for production
Plus: Desired ending inventory of DM
Total quantity (pounds) needed
Less: Beginning inventory of DM
Quantity (pounds) to purchase
Multiply by: Cost per pound
Total cost of DM purchases

Requirement 4. Prepare a cash payments budget for the direct material purchases from Requirement 3. (Use the accounts payable balance at December 31 of prior year for the prior month payment in January.) (Round your answers to the nearest whole dollar.)

Martin Manufacturing
Cash Payments for Direct Materials Budget
For the Quarter Ended March 31
	Month

	January	February	March	Quarter
20% of current month DM purchases
80% of last month's DM purchases
Total cash payments

Requirement 5. Prepare a cash payments budget for direct labor.

Martin Manufacturing
Cash Payments for Direct Labor Budget
For the Quarter Ended March 31
	Month
	January	February	March	Quarter
Total cost of direct labor

Requirement 6. Prepare a cash payments budget for manufacturing overhead costs. (Round your answers to the nearest whole dollar.)

Martin Manufacturing
Cash Payments for Manufacturing Overhead Budget
For the Quarter Ended March 31
	Month
	January	February	March	Quarter
Variable manufacturing overhead costs
Rent (fixed)
Other fixed MOH
Cash payments for manufacturing overhead

Requirement 7. Prepare a cash payments budget for operating expenses. (Round your answers to the nearest whole dollar.)

Martin Manufacturing
Cash Payments for Operating Expenses Budget
For the Quarter Ended March 31
	Month
	January	February	March	Quarter
Variable operating expenses
Fixed operating expenses
Cash payments for operating expenses

Requirement 8. Prepare a combined cash budget. (If a box is not used in the table leave the box empty; do not enter a zero. Use parentheses or a minus sign for negative cash balances and financing payments.)

Martin Manufacturing

Combined Cash Budget

For the Quarter Ended March 31

		January
	Beginning cash balance
	Plus: Cash collections
	Total cash available
	Less: cash payments:
	Direct material purchases
	Direct labor
	Manufacturing overhead costs
	Operating expenses
	Tax payment
	Equipment purchases
	Total cash payments
	Ending cash balance before financing
	Financing:
	Plus: New borrowings
	Less: Debt repayments
	Less: Interest payments
	Total financing
	Ending cash balance

February

March

Quarter