The Black Bean Company processes and distributes beans. The beans are packed in 1-pound plastic bags and sold to grocery chains for $0.50 each in boxes of 100 bags. Sales in February were 14,000 boxes, and the firm anticipates selling 16,000 boxes during March. Typically, 80% of the firms customers pay within the month of sale, 18% of the customers pay the month after, and 2% of sales are never collected.

Most of the processing is done automatically. Consequently, most ($80,000) of the firms factory overhead is depreciation expense.

The firm advertises heavily and will publish $75,000 worth of advertisements in popular magazines during March. This is up from Februarys $60,000 for advertisements. The firm pays for 10% of its advertising in the month the advertisements are run and 90% in the next month. Following are Marchs budgeted Income Statement and Statement of Cost of Goods Manufactured and Sold. All costs and expenses are paid for as incurred unless specifically indicated otherwise above. The firm will begin March with a cash balance of $25,000 and pays a monthly dividend of $15,000 to owners.

BUDGETED INCOME STATEMENT

Sales $800,000

Cost of Goods Sold 540,000

Gross Margin $260,000

Administrative Salaries 80,000

Sales Commissions 69,000

Advertising 75,000

Bad Debt Expense 16,000

Operating Income $ 20,000

BUDGETED STATEMENT OF COST OF GOODS MANUFACTURED AND SOLD

Beginning Balance Direct Materials $ 20,000

Direct materials purchases 330,000

Materials available for use $350,000

Ending balance direct materials 30,000

Direct materials used $320,000

Labor costs incurred 90,000

Overhead costs 115,000

Cost of goods manufactured $525,000

Beginning finished goods balance 45,000

Goods available for sale $570,000

Ending finished goods balance 30,000

Cost of Goods Sold $540,000

Required From the information provided, prepare a cash receipts and disbursements budget for March.