Vertical Ladder Company (VLC) forecasts its sales for January through April will be $40,000, $60,000, $100,000, and $90,000, respectively. All sales are made on credit, and it is expected that 40 percent of sales will be collected in the month of the sale and the remainder will be collected the month following the sale. Customers who pay in the month of the sale will take the 2 percent cash discount VLC offers for paying early. VLC normally purchases and pays for raw materials, which cost 45 percent of sales, one month prior to selling the finished products. Employees' wages represent 20 percent of sales and rent is $6,000 per month. At the beginning of February, VLC expects to have $4,000 in cash, which is $1,000 greater than its target cash balance. Using the information provided, construct VLC's cash budget for February and March. Round your answers to the nearest dollar. Use a minus sign to enter a negative value, if any. If your answer is zero, enter "0". February March Sales $ $ Cash Receipts: Sales in month of sale $ $ Sales one month after sale Total cash receipts $ $ Cash Disbursements: Raw materials $ $ Wages Rent Total cash disbursements $ $ Net cash flow $ $ Beginning cash balance Ending cash balance $ $ Target cash balance Surplus (Shortfall) $ $
Vertical Ladder Company (VLC)
| February | March | |||
| Sales | $ | $ | ||
| Cash Receipts: | ||||
| Sales in month of sale | $ | $ | ||
| Sales one month after sale | ||||
| Total cash receipts | $ | $ | ||
| Cash Disbursements: | ||||
| Raw materials | $ | $ | ||
| Wages | ||||
| Rent | ||||
| Total cash disbursements | $ | $ | ||
| Net cash flow | $ | $ | ||
| Beginning cash balance | ||||
| Ending cash balance | $ | $ | ||
| Target cash balance | ||||
| Surplus (Shortfall) | $ | $ |
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