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Requirement #1 Given the following information for Jawa Corp. prepare a full cash budget for the months of April, May, and June Feb Mar May une July Sales in Units 10,000 12,000 15,100 16,250 16,675 16,000 All units are sold at a price of $24.75, with a per unit cost of $13.50. Sales are collected as follows: 60% month of sale, 30% month after sale and remainder 2nd month after sale. Purchases of materials, which account for 50% of the product cost (remainder of the product cost is Factory worker wages) are paid for 75% month of purchase and 25% month after purchase. Materials are purchased a month in advance In addition the following are paid monthly: Building Lease $21,750, Office salaries $10,500 Management Salaries $20,000, Trash removal $1,500, Utilities based on a rate of 20 cents per unit, Payroll taxes at the rate of 7.65% (paid on all wages), Equipment maintenance based on a rate of 35 cents per unit The company will also be making the following payments: May Insurance payment for the months of May-July $15,000, In April Income tax deposit of $30,000, the company will declare a quarterly dividend in May to be paid June 15th of $25,000, Employee first aid training at a cost of $2,500 is planned for July Depreciation is $21,265 per month based on straight line and Income taxes are based on an average effective tax rate of 11.50%. At the start of April the company had a cash balance of $35,450

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