The treasure of Unisyms Company has accumulated the following budget information for the first two months of the coming year:
____________________________________ March _____________April
Sales ........................................... $450,000 .............. $520,000
Manufacturing ............................... $290,000 .............. $350,000
Selling & Admin. expenses ................. $41,000 .............. $46,4000
Capital additions ............................. $250,000 .............. -------
The company expects to sell about 35% of its merchandise for cash of sales on account 80% are expected to be collected in full in the month of the sale and remainder in the month following the sale. One-fourth of the manufacturing costs are expected to be paid in the month in which they are incurred and the other three-fourth in the following month. Depreciation, insurance, and property taxes represents $64,400 of the probable monthly selling and administrative expenses. Insurance is paid in April. Of the remainder of the selling and administrative expenses, one-half are expected to be paid in the month in which they are incurred, with the balance paid in the following month. Capital additions of $250,000 are expected to be paid in March. Current assets of March 1 are composed of accounts payable of $121,500 ($102,200 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $20,000.
Prepare a monthly cash budget for March and April. Include separate schedules for Accounts Receivable collections and Payments of Manufacturing Costs