See attached for better formatting. The Red Midget Company processes and distributes beans. The beans are packed in 1-pound plastic bags and sold to grocery chains for $0.50 each in boxes of 100 bags. Sales in February were 14,000 boxes and the firm anticipates selling 16,000 boxes during march. Typically 80% of the firms customers pay within the month of sale, 18% pay the month after and 2% are never collected. The firm buys beans from local farmers. The farmers are paid $0.20 per pound, cash. Most of the processing is done automatically. Consequently, most ($80,000) of the firms facotry overhead is depreciation expense. The firm advertises heavily and will publish $75,000 worth of advertisements in popular magazines during March. This is up frm Ferbuarys $60,000 for advertisements. The firm pays for 10% of its advertising in the month the advertisments are run and 90% the next month. Following are March's budgeted Income Statement and Statement of Costs of Goods Manufactured and Sold. All costs and expenses are paid for an incurred unless specifically indicated otherwise above. The firm will begin March with a cash balance of $25,000 and pays a monthly dividend of $15,000 to the owners. Budgeted Income Statement Sales $800,000 Cost of Goods Sold $540,000 Gross Margin $260,000 Administrative Salaries $80,000 Sales Commissions $69,000 Advertising $75,000 Bad debt Expense $16,000 Operating Income $20,000 Budgeted Statement of Cost of Goods Manufactured and Sold Beginning balance direct materials $20,000 Direct materials purchased $330,000 Materials Available for use $350,000 Ending Balance direct Materials $30,000 Direct materials used $320,000 Labor costs incurred $90,000 Overhead costs $115,000 Cost of goods manufactured $525,000 Beginning finished goods balance $45,000 Goods available for sale $570,000 Ending finished goods balance $30,000 Cost of goods sold $540,000 From the information provided, prepare a cash receipt and disbursements budget for March.

The Red Midget Company processes and distributes beans. The beans are packed in 1-pound plastic bags and sold to grocery chains for $0.50 each in boxes of 100 bags. Sales in February were 14,000 boxes and the firm anticipates selling 16,000 boxes during march. Typically 80% of the firms customers pay within the month of sale, 18% pay the month after and 2% are never collected. The firm buys beans from local farmers. The farmers are paid $0.20 per pound, cash. Most of the processing is done automatically. Consequently, most ($80,000) of the firms facotry overhead is depreciation expense. The firm advertises heavily and will publish $75,000 worth of advertisements in popular magazines during March. This is up frm Ferbuarys $60,000 for advertisements. The firm pays for 10% of its advertising in the month the advertisments are run and 90% the next month. Following are March's budgeted Income Statement and Statement of Costs of Goods Manufactured and Sold. All costs and expenses are paid for an incurred unless specifically indicated otherwise above. The firm will begin March with a cash balance of $25,000 and pays a monthly dividend of $15,000 to the owners. Budgeted Income Statement Sales $800,000 Cost of Goods Sold $540,000 Gross Margin $260,000 Administrative Salaries $80,000 Sales Commissions $69,000 Advertising $75,000 Bad debt Expense $16,000 Operating Income $20,000 Budgeted Statement of Cost of Goods Manufactured and Sold Beginning balance direct materials $20,000 Direct materials purchased $330,000 Materials Available for use $350,000 Ending Balance direct Materials $30,000 Direct materials used $320,000 Labor costs incurred $90,000 Overhead costs $115,000 Cost of goods manufactured $525,000 Beginning finished goods balance $45,000 Goods available for sale $570,000 Ending finished goods balance $30,000 Cost of goods sold $540,000 From the information provided, prepare a cash receipt and disbursements budget for March