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Expected unit sales $($frames$)$ for the upcoming months follow:

$\backslash$table$[[$March$,275],[$April$,250],[$May$,300],[$June$,400],[$July$,375],[$August$,425]]$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}30$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$7,200($ $$600$ per month$)$ for expected production of $4,000$ units for the year. Selling and administrative expenses are estimated at $$650$ per month plus $$0\mathrm{.}60$ per unit sold.

Iguana, Incorporated, had $$10,800$ cash on hand on April $1.$ Of its sales, $80$ percent is in cash. Of the credit sales, $50$ percent is collected during the month of the sale, and $50$ percent is collected during the month following the sale.

Of direct materials purchases, $80$ percent is paid for during the month purchased and $20$ percent is paid in the following month. Direct materials purchases for March $1$ totaled $$2,000.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$150$ in depreciation. During April, Iguana plans to pay $$3,000$ for a piece of equipment.

PA$8-3($Static$)$ Preparing Cash Budget $[$LO $8-4]$

Required:

Compute the budgeted cash receipts for Iguana.

Compute the budgeted cash payments for Iguana.

Prepare the cash budget for Iguana. Assume the company can borrow in increments of $$1,000$ to maintain a $$10,000$ minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter.

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