Prepare the Cash Collection Budget, Cash Payment Budget and a Final Adjusted Cash Budget using the below information for Pick Up Truck Company.

The company is expected to end the current year with $20,000 cash, $162,000 in accounts receivable, and $24,862 in accounts payable.

The company's sales are all made on credit, with 70% of the balance collected in the quarter of the sale and 30% in the quarter after the sale.

The company plans to sell a piece of land in the third quarter for $15,000, its book value.

The total cost of raw materials to be purchased (including tires) are: $31,270 in quarter one; $39,530 in quarter two; $60,936 in quarter three; and $69,021 in quarter four.

Raw materials purchases are paid for 60% in the quarter of the purchase and 40% in the quarter after the purchase.

All other cash expenses are paid for in the quarter they are incurred.

Capital expenditures for 20X1 include the purchase of machines for $20,000 in quarter two and $56,000 in quarter three.

Income taxes for the current year are paid quarterly with the final payment being made in the first quarter of the following year.

The company requires a cash balance of $20,000 at the end of each quarter. Arrangements have been made with the bank to borrow if needed in even increments of $1,000. Assume all borrowings are made at the beginning of the quarter. Borrowings are paid back at the end of the next quarter with interest of 8%..

Note: Sales on quarter basis can be assumed.