The Cash Budget prepared by Danner Company for January and February was so helpful, the company has asked that a similar budger for March and April. The beginning cash balance at March 1 carried over from February 28, $20,000. Also carried over is the borrowing of $6,000. Because this is their busy season, ahead of summer , amounts are larger but terms must be extended to many of the customers. In March , $15,000 will be collected from old accounts. In addition, the company will collect 60% of sales in the current month; 30% in the next monti and 10two months after the sale. All disbursements are made in the current month . In addition, the company wants to repay the $6,000 but must maintain a balance of at least \$20,000 at month end .

Following are information on operations: 7 March 300,000 80,000 75,000 22,000 20,000 Sales Direct materials Direct labor Man . Overhead Selling & Adm. Exp. April 150,000 65,000 60,000 19,000 15,000 28 29 32 a. Calculate the amount of cash to be received in March and April . b. Prepare the cash budget for March and April .