Preparing Cash BudgetRefer to the information in PA9-1. Bamboo You, Inc., had $9,800 cash...

Preparing Cash Budget

Refer to the information in PA9-1. Bamboo You, Inc., had $9,800 cash on hand at April 1. Of its sales, 70 percent is in cash. Of the credit sales, 40 percent is collected during the month of the sale, and 60 percent is collected during the month following the sale.

Of direct material purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Raw materials purchases for March 1 totaled $2,000. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $150 in depreciation.

Required:

Prepare the following for Bamboo You 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.