Avery

Company has prepared the following schedules and additional information:

1(Click

the icon to view the cash receipts schedule.)

2(Click

the icon to view the cash payments schedule.)

3(Click

the icon to view the additional information.) 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.)

Avery Company

Cash Budget

January, February, and March

		January
Beginning cash balance
Cash receipts
Cash available
Cash payments:
Purchases of direct materials
Direct labor
Manufacturing overhead
Selling and administrative expenses
Interest expense
Total cash payments
Ending cash balance before financing
Minimum cash balance desired
Projected cash excess (deficiency)
Financing:
Borrowing
Principal repayments
Total effects of financing
Ending cash balance

February

March

Total

1: Reference

Cash Receipts from Customers
		January	February	March	Total
Total sales		$13,500	$14,600	$13,400	$41,500
		January	February	March	Total
Cash Receipts from Customers:
Accounts Receivable balance, January 1
JanuaryCash sales		$8,100
JanuaryCredit sales, collection of January sales in January		2,700
JanuaryCredit sales, collection of January sales in February			$2,700
FebruaryCash sales			8,760
FebruaryCredit sales, collection of February sales in February			2,920
FebruaryCredit sales, collection of February sales in March				$2,920
MarchCash sales				8,040
MarchCredit sales, collection of March sales in March				2,680
Total cash receipts from customers		$10,800	$14,380	$13,640	$38,820
Accounts Receivable balance, March 31:
MarchCredit sales, collection of March sales in April		$2,680

2: Reference

		January	February	March	Total
Cash Payments
Direct Materials:
Accounts Payable balance, January 1		$0
JanuaryDirect material purchases paid in February			$3,900
FebruaryDirect material purchases paid in March				$3,600
Total payments for direct materials		0	3,900	3,600	$7,500
Direct Labor:
Total payments for direct labor		2,900	3,100	4,000	10,000

Manufacturing Overhead:
Utilities for plant			850	850	1,700
Property taxes on plant		3,720			3,720
Total payments for manufacturing overhead		3,720	850	850	5,420
Selling and Administrative Expenses:
Utilities for office			550	550	1,100
Property taxes on office		1,920			1,920
Office salaries		4,000	4,000	4,000	12,000
Total payments for Selling and Admin. expenses		5,920	4,550	4,550	15,020
Total cash payments		$12,540	$12,400	$13,000	$37,940

Acccount balances, March 31:
Prepaid Property Taxes		$4,230
Accounts Payable		$4,500
Utilities Payable		$1,400

3: More Info

Avery's

beginning cash balance is

$5,500

and

Avery

desires to maintain a minimum ending cash balance of

$5,500.

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

11%

per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month.