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E9-15 Aaron Corporation

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E9-15 Aaron Corporation is projecting a cash balance of $30,000 in its December 31,
2013, balance sheet. Aaron’s schedule of expected collections from customers for the first
quarter of 2014 shows total collections of $180,000. The schedule of expected payments


for direct materials for the first quarter of 2014 shows total payments of $41,000. Other information gathered for the first quarter of 2014 is sale of equipment $3,000; direct labor
$70,000, manufacturing overhead $35,000, selling and administrative expenses $45,000;
and purchase of securities $14,000. Aaron 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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