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HOW TO SHOW MATH CALCULATIONS

4.Complete the Cash Budget for the following Company with the following known data and past experience activity rates:

January February March

SALES : $220,000 $272,000 $304,000

CASH (Receipts) :

There is NO remaining balance or cash due from December 2007.

40% of sales are paid to the company within the month.

65% of the remainder of sales is paid the following month

The balance or 35% is paid after the second month

Disbursements (Payments):

COGS: 70% of the monthly sales

Interest on notes: Due a week before the end of the 1st Quarter = $2,245.00

Income Taxes: Due on February 15, 2008 = $2,500.00

Dividends for the year 2007:

Dividends are paid to the Shareholders on January 11, 2008 = $17,250.00

Payroll: January = $32,250 February = $33,800 March = $41,400

GOLD METAL PRODUCTION

Cash Budget

For the First Quarter of 2008

January February March

---------------------------------------------------------------------------------------------------------

Beginning Cash Balance ...... $152,500 $ $

CASH Receipts:

Current Cash Sales

From prior month

From previous months

_________ ___________ ___________

Total Cash Available: $ $ $

CASH Disbursements:

Cost of Goods sold $ $ $

Interest on notes

Income Taxes

Dividends Paid

Payroll

_________ ____________ ___________

Total Disbursements $ $ $

_________ ____________ ___________

Ending Cash balance $ $ $

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HOW TO SHOW MATH CALCULATIONS
4.Complete the Cash Budget for the following Company with the following known data and past experience activity rates:

January February March ...

$2.19