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Jessica Inc. provides you with the following budgeted information for two months in the current year.

March April

Sales $$575,000$ $$630,000$

Inventory Costs $220,000330,000$

Capital Expenditures $100,0000$

General and Administration Costs $($including amortization$)90,00085,000$

Expectations:

Cash sales represent $20\%$ of total sales

All sales on account are collected in the following month

$65\%$ of March$$s $$100,000$ worth of capital expenditures is to be paid at the end of March. The remainder is to be paid in the following month. April's capital expenditure will be paid in May.

Monthly amortization represents $15\%$ of general and administration costs

Inventory costs and general and administration costs are to be paid in the month in which they are incurred

Dividends of $$7,000$ are expected to be declared in March and paid in April

Jessica Inc. obtains the minimum financing needed to ensure at least a $$6,000$ cash balance at the end of the month through a note payable. Assume that any amount taken out of the bank loan may be repaid only at year end.

As of March $1$

Cash $$19,000$

Accounts Receivable$*211,000$

Inventory $60,000$

Long$-$Term Assets $105,000$

Accumulated Depreciation $5,000$

Accounts Payable $18,000$

Dividends Payable $($in March$)2,000$

Notes Payable $265,000$

Shareholder's Equity $101,000$

$*$Comprised only of sales on account incurred in February

Do not enter dollar signs or commas in the input boxes.

Use the negative sign for any cash deficit.

Prepare a cash budget for March and April.

Jessica Inc.

Cash Budget for March and April

March April

Opening Cash Balance $Answer

$Answer

Receipts:

Cash from sales $Answer

$Answer

Collection from customers $Answer

$Answer

Total cash available $Answer

$Answer

Disbursements:

Inventory costs $Answer

$Answer

General and admin. costs $Answer

$Answer

Capital Expenditures $Answer

$Answer

$0$

Dividend Payment $Answer

$Answer

$0$

Total Cash Payments $Answer

$Answer

Cash Excess $($Deficit$)$ $Answer

$Answer

Financing Requirements:

Notes Payable $Answer

$Answer

Loan Repayment

Ending Cash Balance $Answer

$Answer

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