Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crane Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2025. Sales Purchases Salaries Administrative expenses Selling expenses Other data. 1.

Crane Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2025. Sales Purchases Salaries Administrative expenses Selling expenses Other data. 1. 2. 3. January $360,300 121,200 84,500 70,000 4. 79,900 All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred. Administrative expenses include $1,200 of depreciation per month. February $400,300 131,200 81,700 73,400 87,900 Collections from customers: January $332,300; February $378,800. Payments for purchases: January $106,200; February $145,000. Other receipts: January: collection of December 31, 2024, notes receivable $17,100; February: proceeds from sale of securities $6,500. Other disbursements: February $12,800 cash dividend.
image text in transcribed
image text in transcribed
Crane Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2025. All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred. Administrative expenses include $1,200 of depreciation per month. Other data. 1. Collections from customers: January $332,300; February $378,800. 2 Pyments for purchsees: January $106,200 - February $145,000 3. Other receipts: January; collection of December 31,2024 , notes receivable $17,100; February: proceeds from sale of securities $6,500. 4. Other disbursements: February $12,800 cash dividend. All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred, Administrative expenses include $1,200 of depreciation per month. Other data. 1. Collections from customers: January $332,300; February $378,800. 2. Payments for purchases: January $106,200; February $145,000. 3. Other recelpts: January collection of December 31, 2024, notes receivable $17,100; February: proceeds from sale of securities $6,500. 4. Other disbursemente: February $12,800 cash dividend. The company's cash balance on January 1,2025, is expected to be 548,300 . The company wants to maintain a minimum cash balance of $55.280. Prepare a cash budget for January and February. (List iterns that increase cash bolance first)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Accounting

Authors: Robert N. Anthony, Leslie Pearlman Breitner

9th Edition

013149693X, 9780131496934

More Books

Students also viewed these Accounting questions