Flip Company had a cash balance of $110,000 on their December 31, 2010 balance sheet. The company wants to maintain a balance of at least $100,000 cash at the end of each quarter. Other relevant cash receipts and disbursements budgeted for the quarter includes:
Collections from customers............................................................ $300,000
Payments for direct materials............................................................. 80,000
Payment for Direct labor.................................................................. .90,000
Sale of equipment.......................................................................... 75,000
Purchase of marketable securities....................................................... 40,000
Selling & administrative expenses...................................................... 80,000
Manufacturing overhead.................................................................. 90,000
Instructions: Prepare a cash budget for the first quarter.