Grey Corporation is projecting a cash balance of $25,000 in its January 31, 2017, balance sheet. Grey’s schedule of expected collections from customers for the first quarter of 2017 shows total collections of $180,000. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $45,000.
Other information gathered for the first quarter of 2018 is: sale of equipment $3,800; direct labor $70,000, manufacturing overhead $35,000, including 2000 depreciation, selling and administrative expenses $45,000, including 1000 depreciation; and purchase of securities $12,000. Grey wants to maintain a balance of at least $25,000 cash at the end of each quarter
Prepare a cash budget for the first quarter