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Past Format Painte? Font Clipboard D7 Cash Budget Given Information For the lear Ended December 31, 2020 Some Company has asked you to prepare a cash budget for the 7 using the following information: 9 Projected cash balance at January 1 50,000 65,000 10 Cash balance desired December 31 Projected sales by quarter (collected 70% in the quarter of sale 11-1 and 20% in the quarter after sale, with the remaining 10% Accounts recievable from 4th quarter 2019 (of which 20,000 is 12 collectible and 10,000 is uncollectible) 13 Sales Quarter 1 14 Sales Quarter 2 30,000 145,000 250,000 160,000 240,000 15 Sales Quarter 3 1 Sales Quarter 4 17 Projected 2020 sale of excess land 18 19 Accumulated dapreciation 20 Book value 21 Cash expected to be received 40,000 cost 40,000 75,000 35,000 22 Gain on sale expected Expected federal income tax refund from 2020 correction of 23 error on 2018 tax return 14,000 Projected 2020 transactions, to be paid in 2020, unless 25 otherwise noted 26 Purchases of merchandise inventory 410,000 27 Operating expenses: 28 Sales and office salaries 29 Office utilities 30 Insurance expense (taken from Prepaid Insurance) 121,000 9,000 6,500 55,000 15,000 20,000 31 Depreciation of building and equipment 32 Amortization of copyright 33 Purchases of office equipment Cash dividend (declared in December 2020; to be paid in January 34 2021 28,000 The company has a line of credit at the bank which allows borrowing up to $500,000. Currently, the company has loans of $250,000 taken out two years ago at 10% interest. Interest is due quarterly on March 31, June 30 36 September 30 and December 31 37 38 Cash Budget Solution Sheet Cash Budget Problem Sheeta Ready