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