The cash budget shows expected cash receipts and cash payments during a budgeting period. This budget...
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The cash budget shows expected cash receipts and cash payments during a budgeting period. This budget helps management manage cash flows. TORONTO STICKS COMPANY Cash Budget October-December October November December Beginning cash balance $20,000 $20,000 $38,881 Add: Cash receipts from customers 49,200 $5,200 62,400 Total cash available 69,200 75,200 101,281 Less: Cash payments for Direct materials 7,060 10,240 11,450 Direct labor 2,130 4,020 2,850 Variable overhead 1,775 3,350 2,375 Sales commissions 6,000 4,800 8,400 Sales salaries 2,000 2,000 2,000 General and administrative expe 1,500 4,500 4,500 Income taxes payable V 1,000 Dividends 3,000 Interest on bank loan October ($10,000 × 1%)* 100 November ($4,365 x 1%) 44 41 Purchase of equipment 25,000 Purchase or equipment Total cash disbursements Preliminary cash balance Loan activity Additional loan from bank Repayment of loan to bank 25,000 43,565 31,954 56,575 $25,635 $43,246 $44,706 5,635 4,365 Ending cash balance $20,000 $38,881 $44,706 Loan balance, end of months $4,365 $ O $ 0 Founded to the de Knowledge Check 01 IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000. IP Company has a beginning loan balance of $12,000 P Company's ending loan balance is The cash budget shows expected cash receipts and cash payments during a budgeting period. This budget helps management manage cash flows. TORONTO STICKS COMPANY Cash Budget October-December October November December Beginning cash balance $20,000 $20,000 $38,881 Add: Cash receipts from customers 49,200 $5,200 62,400 Total cash available 69,200 75,200 101,281 Less: Cash payments for Direct materials 7,060 10,240 11,450 Direct labor 2,130 4,020 2,850 Variable overhead 1,775 3,350 2,375 Sales commissions 6,000 4,800 8,400 Sales salaries 2,000 2,000 2,000 General and administrative expe 1,500 4,500 4,500 Income taxes payable V 1,000 Dividends 3,000 Interest on bank loan October ($10,000 × 1%)* 100 November ($4,365 x 1%) 44 41 Purchase of equipment 25,000 Purchase or equipment Total cash disbursements Preliminary cash balance Loan activity Additional loan from bank Repayment of loan to bank 25,000 43,565 31,954 56,575 $25,635 $43,246 $44,706 5,635 4,365 Ending cash balance $20,000 $38,881 $44,706 Loan balance, end of months $4,365 $ O $ 0 Founded to the de Knowledge Check 01 IP Company has a preliminary cash balance of $25,000 and an agreement with the bank that it will keep a minimum balance of $20,000. IP Company has a beginning loan balance of $12,000 P Company's ending loan balance is
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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