Prepare the Cash Budget assuming: 1. January 1, 2020 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2019 are expected to be collected in 7full, $40,000 in the first quarter and the remaining in the second quarter of 2020. 4. Direct material is expected to be paid: a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. 11. McGregor makes equal quarterly payments of its estimated annual income taxes. 12. Accounts payable of $25,500 at December 31, 2019 are expected to be paid in full in the second quarter. McGregor wishes to maintain a balance of at least $30,000 in cash. 13. 14. Assume interest of $1,000 in the repayment 15. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. 16. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2019 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. 115 156 157 158 119 120 121 10 122 20 123 30 124 40 125 126 127 128 129 130 131 132 133 134 135 10 Cash Collection Beginning Cash Balance Sales Accounts Receivable Short term investment Long-Term Investment Issuance of Common Stock Total Receipts Total available cash Cash Disbursement Accounts Payable Direct Material 136 20 137 30 138 139 140 141 142 143 144 40 Direct labor manufacturing overhead Selling and administrative expenses Purchase of truck Annual income taxes total disbursement Excess (deficiency) of availble cash over cash disbursement financing Add: borrowings Less: repayments including interest Ending cash balance 145 146 147 148 149 150 151 152 153 154 155 156 157 158 Current assets 159 Cash 160 161 162 163 164 165 166 167 16 170 171 172 173 174 175 176 177 Account Receivable Finished Good Inventory Raw material inventory total current assets Property, plant and equipment Building and equipment Less: accumulated depreciation Total property, plant and equipment Total assets Liabilities Accounts payable Total liabilities Stockholders equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholder's equity Name of the company Cash budget Date Name of the company Budgeted balance sheet Assets Date Liabilities and stockholders' equity 4