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  3. blueline printing's board of directors was present

Blueline Printing's board of directors was presented with the following information about operations for an...

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Accounting

Blueline Printing's board of directors was presented with the following information about operations for an upcoming three-month period. The board desires to declare a dividend at the end of June, but still maintain cash on hand of $250,000. Blueline began April with $75,000 of cash on hand. Prepare a cash budget, and determine how much cash will be available for the dividend. Is there any apparent risk associated with the dividend plan?

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* Includes monthly depreciation of $100,000
** Includes monthly depreciation of $25,000
*** Equipment purchase to be paid for in July
June $ Customer receipts Cash paid for direct materials Cash paid for direct labor April 700,000 200,000 245,000 140,000 86,000 15,000 May 750,000 222,000 265,000 145,000 89,000 18,000 Factory overhead* SG&A** 800,000 265,000 300,000 154,000 83,000 16,000 500,000 Taxes Equipment purchase***

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