Pink Martini Corporation is projecting a cash balance of $30,000 in its December 31, 2012, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2012 shows total collections of $185,000. The schedule of expected payments for direct materials for the first quarter of 2012 shows total payments of $45,000. Other information gathered for the first quarter of 2012 is as follows: sale of equipment $3,500; direct labour $70,000, manufacturing overhead $35,000; selling and administrative expenses $45,000; and purchase of securities $12,000. Pink Martini wants to maintain a balance of at least $25,000 cash at the end of each quarter.
Instructions
Prepare a cash budget for the first quarter?