Walter Company has the following information for the month of March: Cash balanc
ID: 2558559 • Letter: W
Question
Walter Company has the following information for the month of March: Cash balance, March 1 $ 17,670 Collections from customers 40,950 Paid to suppliers 23,200 Manufacturing overhead 7,000 Direct labor 8,700 Selling and administrative expenses 5,100 Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,650 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7,900 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000. Required: Prepare Walter’s cash budget for the month of March.
Walter Company has the following information for the month of March: Cash balance, March 1 Collections from customers Paid to suppliers Manufacturing overhead Direct labor Selling arnd administrative expenses S 17,670 40,950 23,200 7,000 8,700 5,100 Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,650 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7,900 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000. Required: Prepare Walter's cash budget for the month of March. 5 17670 Beginning Cash Balance [S Budgeted Cash Receipts Budgeted Cash Payments Preliminary Cash Balanoc Cash Borrowed Ending cash balance 40,950Explanation / Answer
Answer
Cash budget for the month of march:
Beginning Cash Budget $17670 Budgeted Cash Receipts $40950 Budgeted Cash Payments Paid to suppliers $23200 Manufacturing overhead(7000-1650) $5350 Direct labor $8700 Selling and administrative expenses $5100 Property purchased $7900 ($50250) Preliminary Cash Balance $8370 Cash Borrowed $2000 Ending Cash Balance $10370Related Questions
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