Question 4 Part B

In order to maintain an efficient cash flow to manage operations, Attentive Company prepares cash budget on a three-month basis. The following information was presented by the respective departments for the Finance Manager to collate and present a cash budget.

Direct labor - April: $85,000, May: $115,000 and June: $128,000

Manufacturing Overhead April: $60,000, May: $75000, June: $43,000. depreciation excluded.

Selling and Administration April: $75,000, May: $80,000 and June: $95,000. depreciation excluded.

Sale of vehicle of $198,045 is expected in the month of June

Interest receivable to be collected in the month of June

Sale of securities of $5,000 is expected in the month of May

Purchase of land valued $20,000 is expected in the month of May

Any financing must be repaid in the month the entire amount owed can be repaid

Attentive has a loan facility with First Regional Bank

The current opening balance is $50,000

Required: Prepare a Cash Budget for April, May and June.