Cassie Is a Manufacturer of Sketching Pads

Essay

Cassie is a manufacturer of sketching pads.The following information is available from the company's budgets:
Manufacturing overhead includes depreciation of $12,000 per month.There is no depreciation included in the selling and administrative expenses.All expenses are paid in the month they are incurred.Cash at the beginning of the period was $20,000.The company wants to maintain a minimum cash balance of $20,000.There were no loans outstanding on May 1.The line of credit with the bank allows for borrowings and repayments in $1,000 increments.If the loan is paid off by the end of the quarter,there is no interest.
a.Prepare monthly cash budgets for the 2^nd quarter.
b.What is the amount of cash shown on the balance sheet at the end of the quarter?