Preparing Cash BudgetRefer to the information in PB9-1. Flying High Company had $12,200 ca...

Preparing Cash Budget

Refer to the information in PB9-1. Flying High Company had $12,200 cash on hand at April 1. Of its sales, 80 percent is cash. Of the credit sales, 60 percent is collected during the month of the sale and 40 percent is collected during the month following the sale.

Of raw material purchases, 70 percent is paid for during the month purchased, and 30 percent is paid in the following month. Raw materials purchases for March totaled $800. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation.

Required:

Prepare the following for quarter 2:

1.Budgeted cash receipts. Include each month (April-June) as well as quarter 2 totals.

2. Budgeted cash payments.

3. Cash budget.