ch20 #6

Exercise 20-22 (Algo) Manufacturing: Cash budget LO P2 Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget. a. Beginning cash balance, September 1,$44,000. b. Budgeted cash receipts from September sales, $264,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $76,000; and September (budgeted), \$107,000. Payments for direct materials follow: 70% in the month of purchase and 30% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $30,000. e. Budgeted depreciation expense for September, $3,800. f. Budgeted cash payment for dividends in September, $57,000. g. Budgeted cash payment for income taxes in September, $10,000. h. Budgeted cash payment for loan interest in September, \$1,700