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Administrative salaries $21,000$

Interest on bonds $15,000$

Property taxes $-$

Sales commissions $4,400$

Total CDs for Other Expenses $$77,400$

Total Cash Disbursements $$383,160$ $$-$ $$-$

Summary Cash Budget

$20$x$2$

January February March Quarter $1$

Cash Receipts $$413,000$

Cash Disbursements $383,160$

Change in cash due to operations $$29,840$

Proceeds from sale of

marketable securities $15,00015,000$

Proceeds from bank loan $100,000100,000$

Purchase of equipment $(125,000)(125,000)$

Repayment of bank loan $$(100,000)$ $$(100,000)$

Interest on bank loan $(2,500\mathrm{.}00)(2,500\mathrm{.}00)$

Payment of dividends $(50,000\mathrm{.}00)(50,000\mathrm{.}00)$

Change in cash balance during Quarter $1$

Cash balance, January $1,20$x$235,000$

Cash balance, March $31,20$x$2$

Analysis of short$-$term financing needs:

Projected cash balance at December $31,20$x$1$ $$35,000$

Less: Required minimum cash balance $25,000$

Cash Available for equipment purchase $10,000$

Proceeds from sale of marketable securities $15,000$

Cash available $25,000$

Less: Cost of equipment $125,000$

Required short$-$term borrowing $$(100,000)$

Observer Company

Budgeted Income Statement

For the First Quarter $20$x$2$

Sales Revenue

Less: Cost of Goods Sold

Gross Margin

Less: Selling & Administrative Expenses:

Sales salaries

Sales commissions

Advertising & promotion

Administrative salaries

Depreciation

Interest on bonds

Interest on short$-$term loan

Property taxes

Total S & A Expenses $$-$

Net Income $$-$

Observer Company

Budgeted Balance Sheet

$3/31/20$x$2$

Assets:

Cash

Accounts Receivable

Inventory

Building & Equipment $($net of accumulated depreciation$)$

Total Assets $-$

Liabilities and Stockholder's Equity:

Accounts payable

Bond interest payable

Property taxes payable

Bonds payable $($due in $20$x$6)$

Common Stock

Retained Earnings

Total Liabilities & Stockhoder's Equity $$-$

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