Determine the cash budget for the first quarter of 2023: 1. 55% of sales are cash 2.

Determine the cash budget for the first quarter of 2023: 

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1. 55% of sales are cash 2. 45% of sales are on credit cards; the company can collect cash right away less a 2% transaction fee. 3. Purchases of direct materials are on account; by the end of the year, the company has paid for all purchases except 20%. 4. Labour is paid in full by the end of the year. 5. Manufacturing overhead costs are projected to be $1,056,000; included in this is $75,000 in depreciation costs. The remainder is paid in full by the end of the year. Nonproduction costs include selling, general and administrative expenses of $680,000 which are fully paid by the end of the year 6. 7. The company plans to replace machinery at a net cost of $570,000 and to purchase a parcel of land for $120,000. 8. The beginning cash balance is $87,000. 1. 55% of sales are cash 2. 45% of sales are on credit cards; the company can collect cash right away less a 2% transaction fee. 3. Purchases of direct materials are on account; by the end of the year, the company has paid for all purchases except 20%. 4. Labour is paid in full by the end of the year. 5. Manufacturing overhead costs are projected to be $1,056,000; included in this is $75,000 in depreciation costs. The remainder is paid in full by the end of the year. Nonproduction costs include selling, general and administrative expenses of $680,000 which are fully paid by the end of the year 6. 7. The company plans to replace machinery at a net cost of $570,000 and to purchase a parcel of land for $120,000. 8. The beginning cash balance is $87,000.

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