Avery Company has prepared the following schedules and additional information: Complete a cash budget for Avery Company for January, February and March.
Complete a cash budget for Avery Company for January, February and March. (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency with a minus sign or parentheses.) - X Reference Avery Company Cash Budget January, February, and Ma January 4000 11475 Cash Receipts from Customers Beginning cash balance January February March Total Total sales 12,900 $ 37,700 Cash receipts Cash available 13,500 $ 11,300 January February 15475 March Total Cash payments: Purchases of direct materials Direct labor 2900 $ 3120 9,450 2,025 Manufacturing overhead Selling and administrative expenses 8180 $ 2,025 Cash Receipts from Customers: Accounts Receivable balance, January 1 January-Cash sales JanuaryCredit sales, collection of January sales in January JanuaryCredit sales, collection of January sales in February February-Cash sales February-Credit sales, collection of February sales in February February-Credit sales, collection of February sales in March March-Cash sales MarchCredit sales, collection of March sales in March Interest expense 7,910 14200 1,695 S 1,695 9,030 Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing Borrowing Principal repayments Total effects of Ofinancing 1,935 12,660 $ 11,475 11,630 35,765 Total cash receipts from customers Accounts Receivable balance, March 31: MarchCredit sales, collection of March sales in April S 1,935 Ending cash balance January February March Total 0 Cash Payments Direct Materials: Accounts Payable balance, January 1 JanuaryDirect material purchases paid in February FebruaryDirect material purchases paid in March Total payments for direct materials $ 3,300 4,500 4,500 $ 0 3,300 7,800 Direct Labor: Total payments for direct labor 2,900 3,300 4,400 10,600 750 750 Manufacturing Overhead: Utilities for plant Property taxes on plant Total payments for manufacturing overhead 1,500 3,120 3,120 3,120 750 750 4,620 450 450 900 Selling and Administrative Expenses: Utilities for office Property taxes on office Office salaries Total payments for Selling and Admin. expenses 1,680 1,680 6,500 6,500 19,500 6,500 6,950 8,180 6,950 22,080 A Total cash payments 14,200 $ 14,300 $ 16,600 $ 45,100 3,300 January-Direct material purchases paid in February FebruaryDirect material purchases paid in March Total payments for direct materials $ 4,500 4,500 $ 3,300 7,800 Direct Labor: Total payments for direct labor 2,900 3,300 4,400 10,600 750 750 Manufacturing Overhead: Utilities for plant Property taxes on plant Total payments for manufacturing overhead 3,120 1,500 3,120 4,620 3,120 750 750 450 450 900 Selling and Administrative Expenses: Utilities for office Property taxes on office Office salaries Total payments for Selling and Admin. expenses 1,680 6,500 6,500 8,180 6,500 6,950 1,680 19,500 22,080 6,950 $ 14,200 $ 14,300 $ 16,600 $ 45,100 Total cash payments Acccount balances, March 31: Prepaid Property Taxes Accounts Payable Utilities Payable $ 3,600 $ 4,200 1,200 i More Info . Avery's beginning cash balance is $4,000 and Avery desires to maintain a minimum ending cash balance of $4,000. Avery borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 17% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month. Print Done
