Assume the following: 1) LimeLemon has access to an open line of credit with the bank to borrow money if needed. To keep things simple, ignore interest calculations on the bank borrowings. Also, loan borrowings and repayments are taken in multiples of $1,000. 2) LimeLemon started the year with $11,300 in its bank account and must maintain a minimum cash balance of $4,000 at the end of each month. 3) LimeLemon maintains that it will repay debts as soon as possible with any excess cash that becomes available. 4) LimeLemon has budgeted the following for 2019: Payment for operating expenses = $15,600 for April, $14,300 for May, and $12,500 for June Depreciation expense is $2,500 a month. LimeLemon will need to purchase new equipment costing $38,000. LimeLemon will pay $8,000 in April and the remaining balance in May. Cash dividends of $1,000 will be paid to in all three months of the first quarter. 45 46 47 48 49 Cash Sales 50 Credit Sales 51 Totals Sales LimeLemon Inc. Forecasted Cash Sales and Credit Sales For the quarter ended June 30, 2019 April May $ 11,550 $ 13,650 $ S 21,450 $ 25,350 $ $ 33,000 $ 39,000 5 June 15,120$ 28,080S 43,200 $ Total 40,320 74,880 115,200 Umelemon Inc Schedule of Cash Receipts For the quarter ended June 30, 2019 April $ 11,550 $ $ 18,000 $ 12.8705 $ May 13,650 $ 8,580 15,210 S June 15,120 S $ $ 10,140S 16,848$ 42,108$ Total 40,320 18,000 21,450 25,350 16,848 121,968 $ 42.4205 37.440s Umelemon Inc Schedule of Cash Disbursements For the quarter ended June 30, 2019 April May ammaag8www$% $ $ 12,500 6,396 $ $ 53 54 55 56 57 58 Cash Sales 59 March Account receivable 60 April Credit Sale 61 May Credit Sale 62 June Credit Sale 63 Total 64 65 66 67 68 69 70 March Cash spent 71 April Cash spent 72 May Cash spent 73 June Cash spent 74 Total 75 76 77 78 79 80 81 Opening Balance 82 Cash Sales 83 Cash Collection 84 85 86 87 88 89 90 91 92 93 6,396 7,602 $ $ 13.998S June $ $ 7,602S 7,236 $ 14,838 S Total 12,500 12,792 15,204 7,236 47,732 $ 18,8963 Limelemon Inc. Cash Budget For the quarter ended June 30, 2019 April $ 11,300 May June Total 95 96 3 Workbook AP-15B on pp 189-192 4 6 Limelemon Inc Sales Budget For the quarter ended June 30, 2019 April 440 $ 75$ S 33,000 $ Total 1.440 May 520 755 39,000 $ June 480 90 43,200 $ 115,200 Limelemon Inc. Production Budget For the quarter ended June 30, 2019 April 440 104 100 444 May 520 96 June 480 102 96 486 Total 1,440 102 100 1,442 104 512 8 9 Units Sold 10 Selling price per unit 11 Total Sales 12 13 14 15 16 17 18 Units sold 19 Add: Ending Inventory 20 Less: Beginning inventory 21 Units Produced 22 23 24 25 26 27 28 Units Produced 29 Materials Needed per unit 30 Total Material needed 31 Add: ending inventory 32 Less: Beginning inventory 33 Total Material purchased in yards 34 35 36 37 38 39 40 Total Material purchased in yards 41 Price Per yard 42 Total Material purchased cost 43 44 45 46 47 48 49 Cash Sales 50 Credit Sales 51 Totals Sales 52 Umelemon Inc. Direct Material Purchases Budget For the quarter ended June 30, 2019 April 444 2.50 1,110 June May 5121 2.50 1,280 243 256 1,267 486 2.50 1.215 234 243 1,206 Total 1442 2.50 3,605 234 300 3,539 256 300 1,066 Limelemon Inc. Purchasing Budget For the quarter ended June 30, 2019 April 1,066 12.00 $ 12,7925 May 1,267 12.00 15,2045 June 1,206 12.00 14,472 $ Total 3,539 12.00 42,468 Limelemon Inc. Forecasted Cash Sales and Credit Sales For the quarter ended June 30, 2019 April May $ 11,550 $ 13,650 S $ 21,450 $ 25,350 S $ 33,000 $ 39,000 $ June 15,120 $ 28,080S 43,200 $ Total 40,320 74,880 115,200
