HRPD 403Fall 2010ASSIGNMENT 1 –Version 1The CEO of Kingston Cart Inc. asked the

HRPD 403Fall 2010ASSIGNMENT 1 –Version 1The CEO of Kingston Cart Inc. asked the Chief Financial Officer to prepare a Master Budget for the next three months, beginning July 1, 2010. The company’s policy is to maintain a minimum cash balance of $6,000 at each month end.Sales are forecasted at an average selling price of $70 per cart. The company wishes to maintain an ending Inventory balance of $16,000. Component costs are $40 for each cart. Purchases during any given month are paid in full during the following month. All sales are on credit, payable within 30 days, but experience has shown that 70% of current sales are collected in the current month, 20% in the next month and 10% in the month thereafter. Bad debts are negligible.SCHEDULE OF OPERATING EXPENSES AMOUNTS PER MONTH:Wages and salaries

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