Sharpsteen Enterprises has a cash balance of $52,000 on May 1. It wants to maintain a minimum monthly cash balance of $50,000. The company has a line of credit at a local bank that enables it to borrow up to $40,000 per month with interest of 12% per year. Any borrowings are repaid in the following months, as cash is available. From the information below, prepare a schedule of expected collections from customers a schedule of expected payments for direct materials purchases a cash budget for the months of May and June Sales June, $160,000; July, $240,000 At point of sale, 70% is received in cash, and the balance is collected in the following month DM Purchases June, $83,000; July, $103,000 following month. DL June, $50,000; July, $60,000 Wages are paid at the time they are incurred. FO June, $25,000; July, $20,000 All cash overhead costs are paid as incurred. Selling & June, $24,000; July, $21,000 All cash selling and administrative costs are paid when incurred. Admin Expenses Equipment Purchase June, $20,000 July Schedule of Expected Cash Collections from Customers June July May sales 60,000 June sales July sales 60,000 $ Schedule of Expected Payments for Direct Materials June May purchases 30,000 June purchases July purchases $ 30,000 EA $ en $ Sharpsteen Enterprises Cash Budget For June & July June July 82,000 Beginning cash balance Cash receipts Total cash available Cash payments DM purchased $ 52,000 $ $ 60,000 $ $ 112,000 $ 82,000 No $$ here! $ 30,000 $ DL FO S&A expenses Equipment Interest expense Total cash payments Preliminary cash balance Additional loan from bank Repayment of loan to bank Ending cash balance Ending loan balance $ $ 30,000 $ 82,000 $ 82,000 82,000 $ 82,000 $ $ $ Check formulas