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Melanie Inc. Cash Budget for March and April March April Opening Cash Balance 26000 Receipts: Cash from sales $ 31750 $ 35250 Collection from customers

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Melanie Inc. Cash Budget for March and April March April Opening Cash Balance 26000 Receipts: Cash from sales $ 31750 $ 35250 Collection from customers Total cash available Disbursements: Manufacturing costs 160000 300000 General and admin. costs $ 48750 $ 63750 Capital Expenditures 60000 $ 40000 Dividend Payment $ 3000 6000 Total Cash Payments Cash Excess (Deficit) Financing Requirements: Notes Payable 265000 X Loan Repayment Ending Cash Balance XMarch April Sales $635,000 $705,000 Manufacturing Costs 160,000 300,000 Capital Expenditures* 100,000 25,000 General and Administration Costs (including amortization) 65,000 85,000 *includes training programs, machines and buildings Expectations: Cash sales represent 5% of total sales All sales on account are collected in the following month 60% of March's $100,000 worth of capital expenditures is to be paid at the end of March. The remainder is to be paid in the following month. April's capital expenditure will be paid in May. Monthly amortization represents 25% of general and administration costs Manufacturing costs and general and administration costs are to be paid in the month in which they are incurred Dividends of $6,000 are expected to be declared in March and paid in April Melanie Inc. obtains the minimum financing needed to ensure at least a $6,000 cash balance at the end of the month through a bank loan. Assume that any amount taken out of the bank loan may be repaid only at year end. As of March 1 Cash $26,000 Accounts Receivable* 174,000 Inventory 110,000 Long-Term Assets 90,000 Accumulated Depreciation 4,000 Accounts Payable 15,000 Dividends Payable (in March) 3,000 Notes Payable 265,000 Stockholder's Equity 114,000 omprised only of sales on account incurred in February

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