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Iguana, Inc., manufactures bamboo picture frames that sell for $$30$ each. Each frame requires $4$ linear feet of bamboo, which costs $$3\mathrm{.}00$ per foot. Each frame takes approximately $30$ minutes to build, and the labor rate averages $$11$ per hour. Iguana has the following inventory policies:

Ending finished goods inventory should be $40$ percent of next month$$s sales.

Ending direct materials inventory should be $30$ percent of next month$$s production.

Expected unit sales $($frames$)$ for the upcoming months follow:

March $300$

April $300$

May $350$

June $450$

July $425$

August $475$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}30$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$9,600($$$800$ per month$)$ for expected production of $4,000$ units for the year. Selling and administrative expenses are estimated at $$850$ per month plus $$0\mathrm{.}60$ per unit sold.

Iguana, Inc., had $$12,800$ cash on hand on April $1.$ Of its sales, $80$ percent is in cash. Of the credit sales, $50$ percent is collected during the month of the sale, and $50$ percent is collected during the month following the sale.

Of direct materials purchases, $80$ percent is paid for during the month purchased and $20$ percent is paid in the following month. Direct materials purchases for March $1$ totaled $$3,500.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$200$ in depreciation. During April, Iguana plans to pay $$3,500$ for a piece of equipment.

Required:

$1.$ Compute the budgeted cash receipts for Iguana.

$2.$ Compute the budgeted cash payments for Iguana.

$3.$ Prepare the cash budget for Iguana. Assume the company can borrow in increments of $$1,000$ to maintain a $$12,000$ minimum cash balance.