Use the Following Information to Answer the Questions Below

Our Business is preparing the Cash Budget for the Upcoming Month of JUNE. Given the Following;

1. We Estimated that We will PRODUCE 2,000 Bikes and SELL 1,000 Bikes During the month.
2. The Sales price per Unit is $200 Each per Unit
   1. 70% of All Sales are on Credit and 30% are Cash Sales.
   2. 20% of the Credit Sales are collected during the current month and 80% are collected later.
3. Costs Include;
   1. Direct material = $60 per unit, Direct Labor=$80 per unit
   2. Sales Related Costs =$30 per unit
   3. 90% of All Variable Costs are paid during the current month and 10% are paid in the Next Month.
   4. Manufacturing Salaries = $9,000 per month
   5. Factory Rent Costs = $8,000 month.
   6. Machinery Depreciation= $4,000 per month
   7. SGA Costs = $3,000 per month
   8. All Fixed Costs are paid for During the month incurred
4. We Plan To Sell Some Old Equipment and Get Cash during the Month for $11,000.
5. The Estimated Cash Balance for June 1st =$55,000 and the minimum Cash required = $50,000.
6. We can Borrow cash from the Bank at a Rate of 12.00% via a Line of Credit in Minimum 1,000 Increments.

Please Answer the Questions Below.

Enter All Numbers as Numbers Only with NO Commas, Decimals, Dollar Signs or Other Symbols. Show a Negative Number with Parens as Follows = -10 = (10)

1.Compute the Budgeted Cash Receipts =

2.Compute the Budgeted Available Cash =

3.Compute the Budgeted Variable Cash Disbursements =

4.Compute the Budgeted Total Cash Disbursements =

5.Compute the Budgeted End Cash Balance Excess or (Deficiency), Before Any Financing for the Month. =

6.Compute the TOTAL Amount of Borrowing Needed, if Any =

• Make Sure to Borrow enough to Cover any Interest Payments and the Minimum Cash Requirements and Borrowing Must be Done in 1,000 Dollar Increments.

7.Compute the Cost of Interest for One Month Using the Amount Financed from Above. =

8. Compute the Budgeted Net Cash Flow, IN or (OUT) of the Business, Do Not include Financing Amounts. =

9.Compute the Budgeted Net Income (Loss) for the Month, Using the Contribution Income Statement Method. =

10.Compute the Dollar Difference Between the Budgeted Net Income (Loss) and Budgeted Net Cash Flow. =

Name the one largest reason Why there is a Difference between the Net Income and the Net Cash Flow for this BUDGET. Spell Correctly Using ALL CAPS with a space between words if needed. =