Reference no: EM132516326

Delsing Company expects its revenues and payments for the first part of the year to be:

                         Units                    Sales                       Payments

January         4,800                  $24,000               $18,000

February      4,000                       20,000               21,300

March         7,000                     35,000                  19,100

April            4,400                       22,000                22,400

May              5,600                         28,000              14,700

• Delsing Company wants ending inventory to be equal to 20% of the following month's budgeted sales. 80% of the firm's sales are on credit. Past experience shows that 40% of accounts receivable are collected in the month of sale, and the remainder is collected in the month following sale. Delsing pays its payments in the following month.
• Company had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $10,000 on March 1. At the end of each month, the company makes a payment to repay the loan if excess cash is available. The 12% per annum interest calculated on the beginning balance is paid monthly.

Required:

Question (a) production budget for March and April

Question (b) schedule of cash receipts for March and April.

Question (c) cash Budget for March and April