Now it is time for the Selling and Administrative Budget. It too will be divided into a variable portion and a fixed portion. Assume that variable S&A costs are $3 per unit plus bad debt expense. Further assume that monthly Fixed Costs are as follows: Advertising $4,000, Executive Salaries $20,000, Other $5,000, and Office depreciation is $3,000. S&A are paid in the month incurred.

Vaughan Company
S&A Budget				Total
3rd Quarter	July	August	September	3rd Quarter
Budgeted Sales	4,000	20,000	12,000	36,000
Variable S&A Expenses	3????	3?????	3?????	3?????
Budgeted Variable S&A Exp.	12,000	60,000	36,000	108,000
Budgeted Fixed S&A Expenses:
Advertising	4,000	4,000	4,000	12,000
Executive Salaries	20,000	20,000	20,000	60,000
Other	5,000	5,000	5,000	15,000
Depreciation	3,000	3,000	3,000	9,000
Total Fixed S&A Expenses	32,000	32,000	32,000	96,000
Total Budgeted S&A Expenses	44,000	92,000	68,000	204,000
Less: Depreciation	(3,000)	(3,000)	(3,000)	(9,000)
Less: Bad Debt Expense	(5,000)	(5,000)	(5,000)	(15,000)
Budgeted Cash S&A Expenses	$ 36,000	$ 84,000	$ 60,000	$ 180,000

From here we go to the cash budget. We need to know cash receipts, cash disbursements, Cash flows/deficit, and the financing section. Vaughan's cash guidelines are as follows: They have a line of credit that can be accessed in $1,000 increments at an annual interest rate of 18%. Money will be borrowed on the last day of a given month and paid back on the last day of the month when it can be. Minimum cash balance required by Vaughan is $50,000. The beginning cash balance on July 1 is $50,000. Interest is paid when money is paid back.

Vaughan Company
Cash Budget
3rd Quarter	July	August	September
Beginning Cash Balance	$ 50,000	$ 165,573	$ 50,000
Add:			3
Cash Receipts	424,000	560,000	1,392,000
Total Cash Available	474,000	725,573	1,442,000
Less: Disbursements
Direct Materials	(71,827)	(108,058)	(71,667)
Direct Labor	(168,000)	(576,000)	(336,000)
FOH	(24,600)	(79,000)	(47,000)
S&A Expenses	(44,000)	(92,000)	(68,000)
Total Disbursements	(308,427)	(855,058)	(522,667)
Cash Balance (Deficit)	165,573	(129,485)	919,333
Borrowings	-	179,485	-
RePayments	-	-	179,485
Interest	-	-	2,692
Ending Cash Balance	$ 165,573	$ 50,000	$ 737,156

I need help with the bold numbers