Prepare the Cash Budget assuming: 1. On January 1, 2021 cash balance is expected to be $120,000 2. Sales are expected to be collected: a. 50% in the quarter of the sale. b. 30% one quarter after the sale. C. 20% two quarter after the sale. 3. Accounts Receivable of $72,000 at December 31, 2019 are expected to be collected in full, $25,000 in the first quarter, $30,000 in the third and the remaining in the fourth quarter of 2020. 4. Direct material is expected to be paid: a. 40% in the quarter of purchase. b. 35% one quarter after the purchase. C. 25% two quarter after the purchase. 5. Short term investments are expected to be sold for $10,000 in the second quarter and $23,500 in the fourth quarter. 6. Long term investment is expected to be sold for $48,000 in the third quarter. 7. Direct labor is expected to be paid: a. 35% in the quarter of purchase. b. 30% one quarter after the purchase. C. 35% two quarter after the purchase. 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 third quarter for $40,000, and a used delivery truck in the fourth quarter for $20,600. 11. McMilland paid half of their estimated annual income taxes in the second quarter and the remaining in the last quarter of the year. 12. Accounts payable of $38,500 at December 31, 2019 are expected to be paid in full in the third quarter. 13. McMilland wishes to maintain a balance of at least $200,000 in cash. 14. Assume interest of 5.35% in the repayment. 15. Common Stock are expected to be issued in the fourth quarter for an amount of 48,000. 16. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $200,000 minimum required balance). Prepare the Cash Budget assuming: 1. On January 1, 2021 cash balance is expected to be $120,000 2. Sales are expected to be collected: a. 50% in the quarter of the sale. b. 30% one quarter after the sale. C. 20% two quarter after the sale. 3. Accounts Receivable of $72,000 at December 31, 2019 are expected to be collected in full, $25,000 in the first quarter, $30,000 in the third and the remaining in the fourth quarter of 2020. 4. Direct material is expected to be paid: a. 40% in the quarter of purchase. b. 35% one quarter after the purchase. C. 25% two quarter after the purchase. 5. Short term investments are expected to be sold for $10,000 in the second quarter and $23,500 in the fourth quarter. 6. Long term investment is expected to be sold for $48,000 in the third quarter. 7. Direct labor is expected to be paid: a. 35% in the quarter of purchase. b. 30% one quarter after the purchase. C. 35% two quarter after the purchase. 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 third quarter for $40,000, and a used delivery truck in the fourth quarter for $20,600. 11. McMilland paid half of their estimated annual income taxes in the second quarter and the remaining in the last quarter of the year. 12. Accounts payable of $38,500 at December 31, 2019 are expected to be paid in full in the third quarter. 13. McMilland wishes to maintain a balance of at least $200,000 in cash. 14. Assume interest of 5.35% in the repayment. 15. Common Stock are expected to be issued in the fourth quarter for an amount of 48,000. 16. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $200,000 minimum required balance)