Prepare the Cash Budget assuming:

$1.$January $1,2021$ cash balance is expected to be $$60,000$

$2.$Sales are expected to be collected:

a$.60\%$ in the quarter of the sale.

b$.25\%$ one quarter after the sale.

c$.15\%$ two quarter after the sale.

$3.$Accounts Receivable of $$68,000$ at December $31,2020$ are expected to be collected in full, $$40,000$ in the first quarter and the remaining in the second quarter of $2021.$

$4.$Direct material is expected to be paid:

a$.35\%$ in the quarter of purchase.

b$.35\%$ one quarter after the purchase.

c$.30\%$ two quarter after the purchase.

$5.$Short term investments are expected to be sold for $$5,000$ in the second quarter and $$3,500$ in the third quarter.

$6.$Long term investment is expected to be sold for $$25,000$ in the third quarter.

$7.$Direct labor is $100\%$ paid in the quarter incurred.

$8.$Manufacturing overhead, all items except depreciation are paid in the quarter incurred.

$9.$Selling and administrative expenses, all items except depreciation are paid in the quarter incurred.

$10.$Management plans to purchase a minivan in the fourth quarter for $$35,000,$ and a delivery truck in the third quarter for $$10,600.$

$11.$McGregor makes equal quarterly payments of its estimated annual income taxes.

$12.$Accounts payable of $$25,500$ at December $31,2020$ are expected to be paid in full in the second quarter.

$13.$McGregor wishes to maintain a balance of at least $$30,000$ in cash.

$14.$ Assume interest of $$1,000$ in the repayment

$15.$Common Stock are expected to be issued in the fourth quarter for an amount of $20,000.$

$16.$Loans are repaid in the earlier quarter in which there is sufficient cash $($that is when the cash on hand exceeds the $$30,000$ minimum required balance$).$