Reference no: EM131769642

A manufacturingcompany's budgeted income statement includes the followingdata:

Data extracted from budgeted income statement	Mar	Apr	May	Jun
Sales	$120,000	$90,000	$95,000	$100,000
Commission expense (15% of sales)	18,000	13,500	14,250	15,000
Salaries expense	30,000	30,000	30,000	30,000
Miscellaneous expenselong dash-4% of sales	4,800	3,600	3,800	4,000
Rent expense	3,600	3,600	3,600	3,600
Utility expense	1,900	1,900	1,900	1,900
Insurance expense	2,100	2,100	2,100	2,100
Depreciation expense	4,400	4,400	4,400	4,400

The budget assumes that60% of commission expenses are paid in the month they are incurred and the remaining40% are paid one month later. Inaddition, 50% of salary expenses are paid in the same month and the remaining50% are paid one month later. Miscellaneousexpenses, rent expense and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1st.

Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

Gamma Corp. has prepared a preliminary cash budget for the 3rd quarter as shown below:

Cash Budget	Jul	Aug	Sep
Beginning cash balance	$32,000	$4,400	$6,900
Plus: Cash collections	49,400	51,000	44,600
Cash available	$81,400	$55,400	$51,500
Less: Cash payments:
Purchases of inventory	36,000	9,000	11,000
Operating expenses	41,000	30,500	30,900
Capital expenditures	0	9,000	7,700
Ending cash balance	$4,400	$6,900	$1,900

Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $50,000 in August, and $42,000 in September. Based on the new data, calculate the new projected cash balance at the end of July.