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4 Alpha-Tech, a rapidly growing distributor of electronic components, is formulating ts plans for 20x5. Carol Jones, the firm's marketing director, has completed the following sales forecast 10 points ALPHA-TECH 20x5 Forecasted sales (in thousands) Month January February March April $ 9,ee0 10,8e0 9,800 11,500 12,500 14,000 15,000 15,000 16,000 16,000 15,900 17,88 July Print August October December Philip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. The following information will be used in preparing the cash flow projection n accounts receivable collection is expected to continue. Sixty percent of bilings are collected the month after the sale, and the remaining 40 percent two months after The purchase of electronic components is Alpha-Tech's largest expenditure, and each month 40 percent of sales. Seventy perce during the month of sale Historally,5 percent of accounts payable has been paid one month after receipt of the purchased components, and the remaining 25 percent has been paid two months after receipt 's cost of goods sold is estimated to be ent of the parts are received by Alpha-Tech one month prior to sale, and 30 percent are received . Hourly wages and fringe benefits, estimated to be 30 percent of the current month's sales, are paid in the month incurred . General and administrative expenses are projected to be $15.620000 for the year. The breakdown of these expenses is pr in the following schedule. Alil cash expenditures are paid uniformly throughout the year, except the property taxes, which are paid in four equal installments at the end of each quarter . 4 four equal installments at the end of each quarter. Salaries and fringe benefits Promotion Property taxes Insurance Utilities Depreciation S 3,280 3,800 1,800 8ee . Income-tax subject to an income-tax rate of 40 percent. Alpha-Tech s operatin $3.200,000. T income for the first quarter of 20x5 is projected to be he company pays 100 percent of the estimated fax payment. . Alpha-Tech maintains a minimum cash balance of $500000. f the cash balance is less than $500,000 at the end of each month All amounts borrowed are repaid out of the subsequent positive the company borrows amounts necessary to maintain this cash flow. The projected April 1. 20x5, opening balance is $500000 Alpha-Tech has no short-term debt as of April 1. 20x5 Alpha-Tech uses a calendar year for both financial reporting and tax Burposes and o urposes . Required 1. Prepare a cash budget for Alpha-Tech by month for the second qua of 20S,Far mplicity, ignore any interest expense associated with borrowing. (Negative amounts should be indicated/by e minus sign.) Cash Budget For the Second Quarter of 20x5 April Collections Eray, 40,10 lll Next >