OTHER INFORMATION

A line of credit is available at a local bank that allows the company to borrow up to $$75,000.$

a$.$ All borrowing occurs at the beginning of the month, and all repayments occur at the end of the month. MNO Company borrowed $$50,000$ in April.

b$.$ The interest rate is $1\%$ per month, paid at the end of each month.

c$.$ The company does not have to make any principle payments until the end of the quarter.

MNO Company desires a cash balance of at least $$30,000$ at the end of each month. The cash balance at the beginning of April was $$40,000.$

Cash dividends of $$51,000$ are to be paid to stockholders in April.

Equipment purchases of $$143,700$ are scheduled for May and $$48,800$ for June. This equipment will be installed and tested during the second quarter and will not become operational until July, when depreciation charges will commence.

Required: Prepare a Cash Budget for the Quarter totals only, ending June $30$th on the next page.

$12$