Exercises E22-26 and E22-27 must be completed before attempting Exercise E22-28. Learning Objective 4 Feb. ending cash bal. $5,780 5.2.2-28 Preparing the financial budget-cash budget Use the original schedule of cash receipts completed in Exercise E22-26, Requirement 1, and the schedule of cash payments completed in Exercise E22-27 to complete a cash budget for Marcel Company for January, February, and March. Additional information: Marcel's beginning cash balance is $5,000, and Marcel desires to maintain a minimum ending cash balance of $5,000. Marcel borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 8% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month. ng Objectives 4,7 1. Feb. total cash receipts $12,080 he following E22-26 Preparing a financial budget-schedule of cash receipts, sensitivi analysis Marcel Company projects the following sales for the first three months of year: $11,200 in January: $12,300 in February; and $11,100 in March. The pany expects 60% of the sales to be cash and the remainder on account. Sala on account are collected 50% in the month of the sale and 50% in the follo month. The Accounts Receivable account has a zero balance on January 1. Rou to the nearest dollar. Requirements 1. Prepare a schedule of cash receipts for Marcel for January, February, and March What is the balance in Accounts Receivable on March 312 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? E22-27 Preparing a financial budget-schedule of cash payments Marcel Company has the following projected costs for manufacturing and selling and administrative expenses: Mar total cash pmts. $11,500 February $3,500 3,500 550 March $4,800 3,600 550 650 650 Direct materials purchases Direct labor costs Depreciation on plant Utilities for plant Property taxes on plant Depreciation on office Utilities for office Property taxes on office Office salaries January $3,100 3,300 550 650 200 550 250 170 3,500 550 200 550 250 170 3,500 250 170 3,500 All costs are paid in month incurred except: direct materials, which are paid in the month following the purchase, utilities, which are paid in the month after incurred: and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1. Prepare a schedule of cash payments for Marcel for January, February, and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Utilities Payable as of March 31