The gammaro company is preparing ts cash payments budget. The following items relate to cash payments the company anticipates making during the second quarter f the upcoming year.

Requirement

Prepare a cash payments budget for April, May, and June and for the quarter. (If a box is not used in the table leave the box empty; do not enter a zero.)

The Smith Company
Cash Payments Budget
For the Months of April through June
	April	May	June	Quarter
Cash payments for direct materials:
45% of current month purchases
55% of last month's purchases

Part 2

Cash payments for direct labor

Part 3

Cash payments for manufacturing overhead

Part 4

Cash payments for operating expenses

Part 5

Cash payments for new server

Part 6

Cash payment for taxes

Part 7

Total cash payments

More info a. The company pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows: b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: c. Manufacturing overhead is estimated to be 160% of direct labor cost each month. This monthly estimate includes $34,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. d. Monthly operating expenses for March through June are projected to be as follows: Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $11,000 for monthly depreciation on administrative offices and equipment, and $3,200 for bad debt expense. e. The company plans to pay $3,000 (cash) for a new server in May. f. The company must make an estimated tax payment of $13,500 on June 15