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R 23-6A Omonia Manufacturing has planned a cash budget for the first six months of 2011. ish collections. Estimates show that $60,000 should be collected in March and June for dividends reurchase payment, ceived on investments in the shares of other companies. Each month, fixed operating bjs. 2,3 expenses for wages, rent, heat, and light must be paid in the amount of $220,000. Collections on accounts receivable are estimated as follows: 60% collected in month of sale 25% collected in month following sale 15% collected in second month following sale Payments for merchandise purchased are scheduled so that 70% of the payments are made in the month of purchase with the balance paid in the following month. The cash balance is estimated at $175,000 for January 1. Estimated net sales and purchases by month are as follows. An income tax payment of $100,000 is to be made in February, and a payment of $150,000 is to be made in June. A loan repayment of $80,000 will be made in February with interest added of $12,000. No other interest payments on money borrowed will be made during the months of January, February, March, and April. A minimum cash balance of $150,000 must be available at the end of each month. Instructions 1. Prepare a schedule of collections on receivables for the months of January, February, March, and April. 2. Prepare a schedule of payments for purchases for the months of January, February, March, and April. 3. Prepare a comprehensive and complete cash budget for the months of January, February, March, and April. Identify the months, if any, when short-term loans will be required and the amounts of the loans. Also, indicate months, if any, when shortterm loans can be repaid

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