Melanie Inc. provides you with the following budgeted information for two months in the current year.

March April Sales $565,000 $660,000 Inventory Costs 180,000 320,000 Capital Expenditures 100,000 75,000 General and Administration Costs (including amortization) 60,000 105,000

Expectations: Cash sales represent 15% of total sales All sales on account are collected in the following month 65% of Marchs $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 20% of general and administration costs Inventory costs and general and administration costs are to be paid in the month in which they are incurred Dividends of $9,000 are expected to be declared in March and paid in April Melanie Inc. obtains the minimum financing needed to ensure at least a $9,750 cash balance at the end of the month through a note payable. Assume that any amount taken out of the bank loan may be repaid only at year end.

As of March 1 Cash $19,000 Accounts Receivable* 195,000 Inventory 125,000 Long-Term Assets 115,000 Accumulated Depreciation 6,000 Accounts Payable 19,000 Dividends Payable (in March) 3,000 Notes Payable 265,000 Shareholder's Equity 108,000 *Comprised only of sales on account incurred in February

Do not enter dollar signs or commas in the input boxes. Use the negative sign for any cash deficit.

Prepare a cash budget for March and April. Melanie Inc. Cash Budget for March and April March April Opening Cash Balance $Answer $Answer Receipts: Cash from sales $Answer $Answer Collection from customers $Answer $Answer Total cash available $Answer $Answer Disbursements: Inventory costs $Answer $Answer General and admin. costs $Answer $Answer Capital Expenditures $Answer $Answer Dividend Payment $Answer $Answer Total Cash Payments $Answer $Answer Cash Excess (Deficit) $Answer $Answer Financing Requirements: Notes Payable $Answer $Answer Loan Repayment Ending Cash Balance $Answer $Answer