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Iguana, Incorporated, manufactures bamboo picture frames that sell for $$25$ each. Each frame requires $4$ linear feet of bamboo, which costs $$3\mathrm{.}00$ per foot. Each frame takes approximately $30$ minutes to build, and the labor rate averages $$15$ 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 $375$

April $450$

May $500$

June $600$

July $575$

August $625$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}50$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$6,000($$$500$ per month$)$ for expected production of $5,000$ units for the year. Selling and administrative expenses are estimated at $$550$ per month plus $$0\mathrm{.}70$ per unit sold.

Iguana, Incorporated, had $$11,100$ 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 $$5,500.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$350$ in depreciation. During April, Iguana plans to pay $$2,000$ for a piece of equipment.

Required:

Compute the budgeted cash receipts for Iguana for the months april may june.

Compute the budgeted cash payments for Iguana for the months april may june.

Prepare the cash budget for Iguana. Assume the company can borrow in increments of $$1,000$ to maintain a $$10,000$ minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter.