Anthony Ltd. prepares monthly cash budgets.

The following information is available for the company:

	July	August
Sales	$357,000	$404,000
Direct materials purchases	$119,000	$111,000
Direct labour	$84,000	$112,000
Manufacturing overhead	$69,000	$89,000
Selling & administrative expenses	$76,000	$80,000

The following additional information is available:

a. Sales are 100% on account and the company expects to collect 50% in the month of sale, 40% in the month following sale and 10% in the month after that.

b. Direct material purchases are paid 30% in the month of purchase and 70% in the month after purchase.

c. Sales for May were $201,000 and sales in June were $277,000.

d. The company purchased $90,000 of direct materials in June.

e. Direct labour is paid in the month the costs are incurred.

f. Manufacturing overhead includes $10,000 of depreciation every month. The remaining costs are paid in the month incurred.

g. Selling and administrative expenses include $5,000 of depreciation per month. The remaining cost are paid in the month incurred.

h. In July the company collected $4,000 on a notes receivable.

i. In August the company sold old equipment for $6,000 cash.

j. In August the company purchased new equipment for $20,000 cash.

k. The cash balance on July 1 is expected to be $50,000.

l. The company maintains a minimum cash balance of $41,000 per month.

Prepare a cash budget for July.

What is the beginning cash balance for July?

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What is the total collections on accounts receivable for July?

HINT: Produce a cash collections schedule to determine this amount!

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What is the total of all other miscellaneous cash collected during the month.

HINT: consider other cash collections such as from notes receivable and the sale of equipment, if applicable.

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What is the total cash available for July?

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What is the total payment (cash disbursement) for direct materials for July?

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What is the total payment (cash disbursement) for direct labour for July?

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What is the total payment (cash disbursement) for overhead for July?

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What is the total payment (cash disbursement) for selling and administrative for July?

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What is the total payment (cash disbursement) for all other expenses for July?

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What is the total disbursements for July?

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What is the excess (deficiency) of cash available over needs?

NOTE: if there is a deficiency enter your number as a negative (preceded by a minus sign) or in brackets.

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Does the company need to borrow funds in order to meet their minimum cash requirements?

Enter either Y for YES or N for NO

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