Nemani Corporation is projecting a cash balance of $31,408 in its December 31, 2

Question

Nemani Corporation is projecting a cash balance of $31,408 in its December 31,
2011, balance sheet. Nemani schedule of expected collections from customers for the first quarter
of 2012 shows total collections of $179,886. The schedule of
expected payments for direct materials for the first quarter of 2012 shows total
payments of $40,850. Other information gathered for the first quarter of 2012 is:
sale of equipment $3,389; direct labor $70,181, manufacturing overhead
$34,598, selling and administrative expenses $45,116; and purchase of
securities $12,246. Nemani wants to maintain a balance of at least $25,400 cash at the end of each
quarter.

Instructions: Complete the cash budget for the first quart

Explanation / Answer

Beginning cash balance 31,408 Add: Receipts Collections from customers 179,886 Sale of equipment 3,389 Total receipts 183,275 Less: Disbursements payments for direct material 40,850 payments for direct labor 70,181 purchase of securities 12,246 selling and admin 45,116 manufacturing overhead 34,598 Total disbursements 202,991 Excess(deficiency) of available cash over disbursements 11,692 financing borrowings 13,708 repayments 0 ending cash balance 25,400

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.