7,025.00s 8,125.00 Donot your 3 A April 8,854.40 $ 6,539.607,205.60 22,599.60 3.

Question

7,025.00s 8,125.00 Donot your 3 A April 8,854.40 $ 6,539.607,205.60 22,599.60 3. Prepare the cash budget for iguana. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance.(Leave no cell blank en answers to 2 declmal places.) is complete b June 11,100.00s 10,270.60 10,856.003$ 11,100.00 02500 25010,500.00 25,650.00 854.40 6539.607,205.60 22,599.60 9,270.60s 11,856.00 14,150.40 14,150.40 1,000.00 (1,000.00) 0 00001 0,270.60 $ 10,856.0014,150.40 14,150.40 0.00

Explanation / Answer

March April May June Jul Sales 7250 7000 8250 10750 10125 Budgeted Cash Receipts April May June Cash Sales 80% of sales 5600 6600 8600 Credit sales collection 50% of 20% of sales of current month 700 825 1075 Credit sales collection 50% of 20% of sales of previous month 725 700 825 Total Cash collected 7025 8125 10500 Finished Goods Production Schedule April May June Jul Sales of current month 280 330 430 405 Add Ending Inventory ( 40% of next month's sales) 132 172 162 182 Less Opening inventory 112 132 172 162 Finished Goods to be produced 300 370 420 425 Raw Material Purchase Schedule in Feet April May June Raw material required to produce Finished Goods (4* Finished goods to be produced) 1200 1480 1680 Add: Closing Inventory( 30%) of next month's production 444 504 510 Less Opening inventory 360 444 504 Raw material to be purchased 1284 1540 1686 Cost of raw material to be purchased( $2 per foot) 2568 3080 3372 Fixed Manufacturing Overheads per month 600 Less Depreciation 180 Cash Fixed Manufacturing Overheads per month 420 Budgeted Cash Payment April May June For purchases during month 80% 2,054.40 2,464.00 2,697.60 For purchase of last monh(20%) 400.00 410.88 492.80 Labour Cost( no of frames produced*30/60*11) 1,650.00 2,035.00 2,310.00 Variable manufaturing overheads( 0.60 per unit produced) 180.00 222.00 252.00 Cash Fixed Manufacturing Overheads per month 420.00 420.00 420.00 Selling Expenses 700.00 700.00 700.00 Administrative Expenses(0.5 per unit sold) 140.00 165.00 215.00 Equipment purchase 3,300.00 Budgeted Cash Payment 8,844.40 6,416.88 7,087.40 Cash Budget April May June Beginning Cash Balance 11100 10,280.60 10,988.72 Add Cash receipts 7025 8125 10500 Less Cash Payment 8,844.40 6,416.88 7,087.40 Preliminary Cash balance 9,280.60 11,988.72 14,401.32 Cash borrowed/ repaid 1000 -1000 0 Ending Cash Balance 10,280.60 10,988.72 14,401.32

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