Use the Following Information to Answer the Questions Below

Our Business is preparing their CASH BUDGET for the Upcoming Month of JUNE.

We Plan to PRODUCE $1,000$ Bikes and SELL $600$ Bikes During the month.

The Sales price per Unit is $$200$ Each per Unit

$80\%$ of All Sales are on Credit and $20\%$ are Cash Sales.

$25\%$ of the Credit Sales are collected during the current month and $75\%$ are collected later.

Costs Include;

Direct material $=$ $$20$ per unit, Direct Labor$=$$$60$ per unit

Sales Related Costs $=$$$40$ per unit

$75\%$ of Variable Costs are paid during the current month and $25\%$ are paid in the Next Month.

Manufacturing Salaries $=$ $$8,000$ per month

Factory Rent Costs $=$ $$6,000$ month.

Machinery Depreciation$=$ $$5,000$ per month

SGA Costs $=$ $$3,000$ per month

All Fixed Costs are paid for During the month incurred

We Plan to SELL some Equipment for Cash during the Month for $$22,000.$

The Estimated Cash Balance for June $1$st $=$$$53,000$ and the minimum Cash required $=$ $$50,000.$

We can Borrow Cash from the Bank at a Rate of $12\%$ via a Line of Credit in $1,000$ Increments.

QUESTIONS

Enter All Numbers as Numbers Only with NO Commas, Decimals, Dollar Signs or Other Symbols. Show a Negative Number When Needed with Parens as Follows $=(150)$

$1.$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 Amount of Total Borrowing Needed, if Any $=$

Make Sure to Borrow enough to Cover any Interest Payments & Minimum Cash Requirements.

Borrowing Must be Done in $1,000$ Dollar Increments.

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

$.....$Round Your answer to the Nearest Penny.

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

$9.$Compute the Budgeted Net Income or $($Net 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. $=$

$11.$ What Item Created the Largest Difference between the Net Income and the Net Cash Flow. INPUT one of the Following; A or B or C or D or E or F or G $=$

A$=$ Inventory

B$=$ Accounts Receivable

C$=$ Depreciation

D$=$ Sale of Equipment

E$=$ Purchase of Equipment

F$=$ Accounts Payable

G$=$ None of These