[The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 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 months sales. Ending raw materials inventory should be 30 percent of next months 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 $0.50 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 $0.70 per unit sold. Iguana, Inc., 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 raw materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw 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.

5. Required information

Required: 1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) 2. Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) 3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. (Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.)

(Please explain steps)

The following nformation apples to the questions displayed below lguana, Inc, maufactures bamboo picture raes hat sell for 525 eachi. Eachi Trame requires 4 lirnear feet of bamboo, which costs $3.00 per foo. Each fraie lakes approximately 30 miutes to build, and the labor rate averages $15 per hour. lguana has the following inventory policies Ending finlshed goods Inventary should he 40 percent of next month's sales Ending raw materials inventory should be 30 percent of next month's praductian Expected unit sales (frames) for the upcoming months follow 375 450 500 March Aprl May June July August 575 625 Variable manutacturing overhead is incurred at a rate of $0:50 per unit produced. Annual Tixed manufacturing overhcad is estimated to be 56,000 (5500 per month] tor expected production of 5,000 units tor thc yoar. Sclling and administrative expenses are cstimated at $550 per month plus $00 per unit sold. lcuana Inc. had $11 100 cash on hand on April ? O its sales, 80 percent is in cash the credit sales 50 percent ls collected during the month ofthe sale and 50 percent is collected during the month oll ing the sale Of raw materlals purchases, 80 percent is pald for cluring the month purchased and 20 percent is pald In the following month Raw materials purchases for March 1 totaled $5,500 All other onerating costs are pald during the month incurred. Manthly fixed manufacturing overhead Includes $350 in depreclation. During April, Iguana plans to pay $2,000 for a plece of equipment