Question - Alpha Corporation is projecting a cash balance of $40,000 in its December 31, 2009, balance sheet. Alpha's schedule of expected collections from customers for the first quarter of 2010 shows total collections of $200,000. The schedule of expected payments for direct materials for the first quarter of 2010 shows total payments of $50,000. Other information gathered for the first quarter of 2010 is: sale of equipment $3,000; direct labor $70,000, manufacturing overhead $30,000, selling and administrative expenses $50,000; and purchase of securities $15,000. Alpha wants to maintain a balance of at least $45,000 cash at the end of each quarter.

Required - Prepare a Cash Budget.