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Pink Martini Corporation is projecting a cash balance of $31,000 in its December 31, 2009, balance sheet.

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E23-13 Pink Martini Corporation is projecting a cash balance of $31,000 in its December 31, 2009, balance sheet. Pink Martini’s schedule of expected collections from customers for the first quarter of 2010 shows total collections of $180,000. The schedule of expected payments for direct materials for the first quarter of 2010 shows total payments of $41,000.

Other information gathered for the first quarter of 2010 is: sale of equipment $3,500; direct labor $70,000, manufacturing overhead $35,000, selling and administrative expenses $45,000; and purchase of securities $12,000. Pink Martini wants to maintain a balance of at least $25,000 cash at the end of each quarter. 

Instructions

Prepare a cash budget for the first quarter.

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