Problem 8 Cash Budget Scott Logan Equipment's board of directors was presented with the following information about operations for an upcoming three-month period. The board desires to declare a dividend at the end of June, but still maintain cash on hand of $200,000. Scott began April with $225,000 of cash on hand. Prepare a cash budget, and determine how much cash will be available for the dividend? Is there any apparent risk associated with the dividend plan? April May Customer receipts $ 1,300,000 S 1.350.000 S 1540,000 Cash paid for direct materials Cash paid for direct labor 341.000 417.000 Factory overhead 161.000 540.000 SG&A 174.000 1602200 Taxes 32400 TO Equipment purchase 650.000 Includes depreciation of 580,000 ** Includes depreciation of $45,000 *** Equipment purchase to be paid for in July WORKSHEET 8 April May June Beginning cash balance $225,000 Customer receipts $1,300,000 Available cash $ 1.525.000 Less: Disbursements Ending cash balance