"S4-284-23. Solution:Juan's Taco CompanyCash Receipts Schedule November December January February March AprilSales $120,000 $140,000 $190,000 $210,000 $230,000 $230,000Credit sales (70%) 84,000 98,000 133,000 147,000 161,000 161,000Cash sales (30%) 36,000 42,000 57,000 63,000 69,000 69,000Collections (monthafter credit sales) 33,600 39,200 53,200 58,800 64,40040%Collections (twomonths after credit 50,400 58,800 79,800 88,200sales) 60%Total Cash Receipts $146,600 $175,000 $207,600S4-294-23. (Continued)Juan’s Taco CompanyCash Payments Schedule January February MarchPayments for Material Purchases (20% ofcurrent month’s sales) $ 38,000 $ 42,000 $46,000Labor Expense (50% of sales) 95,000 105,000 115,000Selling and Admin. Exp. (5% of sales) 9,500 10,500 11,500Overhead 12,000 12,000 12,000Taxes 20,000Dividends 16,000Total Cash Payments* $154,500 $169,500 $220,500*The $25,000 of depreciation is excluded because it is not a cash expense. S4-304-23. (Continued)Juan’s Taco CompanyCash Budget January February MarchTotal Cash Receipts $146,600 $175,000 $207,600Total Cash Payments 154,500 169,500 220,500Net Cash Flow (7,900) 5,500 (12,900)Beginning Cash Balance 70,000 65,000 67,600Cumulative Cash Balance 62,100 70,500 54,700Monthly Loan or (repayment) 2,900 (2,900) 10,300Cumulative Loan Balance 2,900 -0- 10,300Ending Cash Balance $ 65,000 $ 67,600 $ 65,000 S4-3124. Hickman Avionics’s actual sales and purchases for April and May are shown here alongwith forecasted sales and purchases for June through September.Sales PurchasesApril (actual) $410,000 $220,000May (actual) 400,000 210,000June (forecast) 380,000 200,000July (forecast) 360,000 250,000August (forecast) 390,000 300,000September (forecast) 420,000 220,000The company makes 10 percent of its sales for cash and 90 percent on credit. Of thecredit sales, 20 percent are collected in the month after the sale and 80 percent are collectedtwo months later. Hickman pays for 40 percent of its purchases in the month after purchaseand 60 percent two months after.Labor expense equals 10 percent of the current month’s sales. Overhead expense equals$15,000 per month. Interest payments of $40,000 are due in June and September. A cashdividend of $20,000 is scheduled to be paid in June. Tax payments of $35,000 are due inJune and September. There is a scheduled capital outlay of $300,000 in September.Hickman Avionics’s ending cash balance in May is $20,000. The minimum desiredcash balance is $15,000. Prepare a schedule of monthly cash receipts, monthly cashpayments, and a complete monthly cash budget with borrowing and repayments for Junethrough September. The maximum desired cash balance is $50,000. Excess cash (above$50,000) is used to buy marketable securities. Marketable securities are sold beforeborrowing funds in case of a cash shortfall (less than $15,000). S4-324-24. Solution:Hickman AvionicsCash Receipts Schedule April May June July Aug. Sept.Sales $410,000 $400,000 $380,000 $360,000 $390,000 $420,000Credit Sales (90%) 369,000 360,000 342,00 324,000 351,000 378,000Cash Sales (10%) 41,000 40,000 38,000 36,000 39,000 42,000Collections (monthafter sale) 20% 73,800 72,000 68,400 64,800 70,200Collections (secondmonth after sale) 80% 295,200288,000273,600259,200Total Cash Receipts $405,200 $392,400 $377,400 $371,400 "