Santa Fe Music,Inc. Santa Fe Music,Inc.sells electronic keyboards.The following information regarding operating costs has been extracted from budgets of Santa Fe Music for December of this year and the first few months of next year:

Dec. Jan. Feb. Mar.

Payroll $12,000 $13,000 $22,000 $16,000

Insurance 4,000 4,000 4,000 4,000

Rent 6,000 6,000 6,000 6,000

Depreciation 2,000 2,000 2,000 2,000

Taxes 1,200 1,000 2,300 2,000

In addition to the above operating costs,enough keyboards are purchased each month to maintain the inventory at 40 percent of the projected next month's sales.The firm is expected to be in compliance with this policy on December 1.Budgeted sales are:

Dec. Jan. Feb. Mar. Apr.

Budgeted sales in units: 40 45 60 50 40

Refer to Santa Fe Music,Inc.The average cost of a keyboard is $500.Merchandise is paid for in the month following its purchase.All other expenses are paid in the month in which they are incurred.On average,a keyboard sells for $1,500.Of each sale,40 percent of the sales price is collected in the month of sale.The balance is collected in the month following the sale. Prepare a cash budget for the first three months of next year.The beginning cash balance on January 1 is budgeted to be $50,000.

Question

Santa Fe Music,Inc.
Santa Fe Music,Inc.sells electronic keyboards.The following information regarding operating costs has been extracted from budgets of Santa Fe Music for December of this year and the first few months of next year:

	Dec.	Jan.	Feb.	Mar.
Payroll	$12,000	$13,000	$22,000	$16,000
Insurance	4,000	4,000	4,000	4,000
Rent	6,000	6,000	6,000	6,000
Depreciation	2,000	2,000	2,000	2,000
Taxes	1,200	1,000	2,300	2,000

In addition to the above operating costs,enough keyboards are purchased each month to maintain the inventory at 40 percent of the projected next month's sales.The firm is expected to be in compliance with this policy on December 1.Budgeted sales are:

	Dec.	Jan.	Feb.	Mar.	Apr.
Budgeted sales in units:	40	45	60	50	40

Refer to Santa Fe Music,Inc.The average cost of a keyboard is $500.Merchandise is paid for in the month following its purchase.All other expenses are paid in the month in which they are incurred.On average,a keyboard sells for $1,500.Of each sale,40 percent of the sales price is collected in the month of sale.The balance is collected in the month following the sale. Prepare a cash budget for the first three months of next year.The beginning cash balance on January 1 is budgeted to be $50,000.

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The Answer of Santa Fe Music,Inc. Santa Fe Music,Inc.sells electronic keyboards.The following information regarding operating costs has been extracted from budgets of Santa Fe Music for December of this year and the first few months of next year:

	Dec.	Jan.	Feb.	Mar.
Payroll	$12,000	$13,000	$22,000	$16,000
Insurance	4,000	4,000	4,000	4,000
Rent	6,000	6,000	6,000	6,000
Depreciation	2,000	2,000	2,000	2,000
Taxes	1,200	1,000	2,300	2,000

In addition to the above operating costs,enough keyboards are purchased each month to maintain the inventory at 40 percent of the projected next month's sales.The firm is expected to be in compliance with this policy on December 1.Budgeted sales are:

	Dec.	Jan.	Feb.	Mar.	Apr.
Budgeted sales in units:	40	45	60	50	40

Refer to Santa Fe Music,Inc.The average cost of a keyboard is $500.Merchandise is paid for in the month following its purchase.All other expenses are paid in the month in which they are incurred.On average,a keyboard sells for $1,500.Of each sale,40 percent of the sales price is collected in the month of sale.The balance is collected in the month following the sale. Prepare a cash budget for the first three months of next year.The beginning cash balance on January 1 is budgeted to be $50,000.

Santa Fe Music,Inc. Santa Fe Music,Inc.sells Electronic Keyboards.The Following Information Regarding Operating Costs