The treasurer of Calico Dreams Company has accumulated thefollowing budget information for the first two months of the comingfiscal year:
| March | April |
Sales. | $450,000 | $520,000 |
Manufacturing costs | 290,000 | 350,000 |
Selling and administrative expenses | 41,400 | 46,400 |
Capital additions | 250,000 | — |
The company expects to sell about 35% of its merchandise forcash. Of sales on account, 80% are collected in full in the monthof the sale, and the remainder in the month following the sale.One-fourth of the manufacturing costs are paid in the month inwhich they are incurred, and the other three-fourths in thefollowing month. Depreciation, insurance, and property taxesrepresent $6,400 of the monthly selling and administrativeexpenses. Insurance is paid in February, and property taxes arepaid yearly in September. A $40,000 installment on income taxes isto be paid in April. Of the remainder of the selling andadministrative expenses, one-half are to be paid in the month inwhich they are incurred and the balance in the following month.Capital additions of $250,000 are paid in March.
Current assets as of March 1 are composed of cash of $45,000 andaccounts receivable of $51,000. Current liabilities as of March 1are accounts payable of $121,500 ($102,000 for materials purchasesand $19,500 for operating expenses). Management desires to maintaina minimum cash balance of $25,000.
Questions: (please enter answers in the correct order)
a. What are the total collections of accounts receivables forMarch?
b. What are the total cash receipts for April?
c. What are the total manufacturing costs for March?
d. What is the cash balance at the end of April?
e. April excess/deficiency at the end of the month?
