Question
Bramble Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $351,000 $400,000 Direct materials purchases 119,000
Bramble Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $351,000 $400,000 Direct materials purchases 119,000 109,000 Direct labour 84,000 113,000 Manufacturing overhead 59,000 74,000 Selling and administrative expenses 76,000 81,000 All sales are on account. Bramble expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022, $200,000; December 2022, $281,000 2. Purchases of direct materials: December 2022, $89,000 3. Other receipts: Januarycollection of December 31, 2022, notes receivable $4,000; Februaryproceeds from sale of securities $5,000 4. Other disbursements: Februarypayment of $20,000 for land The company expects its cash balance on January 1, 2023, to be $51,000. It wants to maintain a minimum cash balance of $40,000. Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Total select an opening cash budget item $enter a dollar amount $enter a dollar amount $enter a dollar amount select between addition and deduction : select an opening name for section one select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a closing name for section one enter a total amount for section one enter a total amount for section one enter a total amount for section one select a summarizing line for the first part enter a total amount for the first part enter a total amount for the first part enter a total amount for the first part select between addition and deduction : select an opening name for section two select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a closing name for section two enter a total amount for section two enter a total amount for section two enter a total amount for section two select a summarizing line for the second part enter a total amount for the second part enter a total amount for the second part enter a total amount for the second part select an opening name for section three : select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select between addition and deduction : select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select between addition and deduction : select a cash budget item enter a dollar amount enter a dollar amount enter a dollar amount select a closing name for section three enter a total amount for section three enter a total amount for section three enter a total amount for section three select a closing cash budget item $enter a total amount for the cash budget $enter a total amount for the cash budget $enter a total amount for the cash budget.
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