Required:

Prepare a Schedule of Cash Collections.

Prepare a Schedule of Cash Disbursements.

Prepare a Cash Budget.

Hardin Fabrications is preparing its cash budget for the third quarter.
Cash balance on July 1	$116,500
Sales collected in cash	40%
Sales collected on credit	60%
A/R balance on July 1	$89,000
% of credit sales collected in the month of sale	20%
% of credit sales collected in the following month	80%
All expenses are paid for as they occur, with the exception of Direct Materials, which is all paid for with a revolving line of credit.
Accounts Payable balance on July 1	$95,000
% of Accounts Payable paid in the month of purchase	30%
% of Accounts Payable paid in the following month	70%
Amount of monthly overhead that is depreciation and amortization	$15,000
Sales Budget
	July	August	September	Total
Unit Sales	2,250	2,100	1,650	6,000
Price per Unit	$220.00	$220.00	$220.00	$220.00
Total Sales	$495,000	$462,000	$363,000	$1,320,000
Direct Materials Purchases Budget
	July	August	September	Total
Total Production	2,380	1,965	2,115	6,460
Direct Materials per Unit	3.50	3.50	3.50	3.50
Materials Required for Production	8,330	6,878	7,403	22,610
Add: Desired Ending Inventory	1,719.38	1,850.63	2,327.50	2,327.50
Total Material Needs	10,049.38	8,728.13	9,730.00	24,937.50
Less: Beginning Inventory	1,000	1,719.38	1,850.63	1,000
Total Purchases	9,049	7,009	7,879	23,938
Cost per Steel Ingot	$17.00	$17.00	$17.00	$17.00
Total Cost of Direct Materials	$153,839	$119,149	$133,949	$406,938
Direct Labor Budget
	July	August	September	Total
Total Production	$2,380	$1,965	$2,115	$6,460
Direct Labor Hours Per Unit	1.50	1.50	1.50	1.50
Total Direct Labor Hours Needed for Production	3,570	2,948	3,173	9,690
Cost per Direct Labor Hour	$19.00	$19.00	$19.00	$19.00
Total Cost of Direct Labor	$60,690	$50,108	$53,933	$164,730
Manufacturing Overhead Budget
	July	August	September	Total
Total Production	2,380	1,965	2,115	6,460
Variable Overhead per Unit Produced	$40	$40	$40	$40
Total Variable Overhead	95,200	78,600	84,600	258,400
Fixed Overhead per Unit	$3.84	$3.84	$3.84	$3.84
Total Fixed Overhead	9,139	7,546	8,122	24,806
Total Overhead	$104,339	$86,146	$92,722	$283,206
Selling and Administrative Expense Budget
	July	August	September	Total
Sales Units	$2,250	$2,100	$1,650	$6,000
Variable Selling Expense per Unit	$18	$18	$18	$18
Total Variable Selling Expense	$40,500	$37,800	$29,700	$108,000
Fixed Administrative Expense (for the month)	$10,417	$10,417	$10,417	$31,250
Total Selling and Administrative Expense	$50,917	$48,217	$40,117	$139,250
Required:
Prepare a Schedule of Cash Collections.
Prepare a Schedule of Cash Disbursements.
Prepare a Cash Budget.
Note: All numbers should be shown as positive numbers.
Schedule of Cash Collections
	July	August	September	Total
June	$89,000
July		$237,600
August			$221,760
September
Total
A/R Balance September 30
Schedule of Cash Payments
	July	August	September	Total
June
July
August
September
Total
A/P Balance September 30
Cash Budget
	July	August	September	Total
Beginning Balance	$116,500
Add: Cash Collections
Less: Cash Disbursements
End Balance