Question
DCorp is projecting a cash balance of $30,000 in its Dec 31, 2021, balance sheet. DCorps schedule of expected collections from customers for the first
DCorp is projecting a cash balance of $30,000 in its Dec 31, 2021, balance sheet.
DCorps schedule of expected collections from customers for the first quarter of 2022 totals $185,000. The schedule of expected payments for direct materials for the first quarter of 2022 totals $43,000.
Other information gathered for the first quarter of 2022 is: Sale of equipment $3,000; Direct labor $70,000; Mfg overhead $35,000; Selling & admin expenses $45,000; and purchase of securities (stocks and bonds as investments) $14,000.
DCorp wants to maintain a balance of at least $25,000 cash at the end of each quarter.
Instructions:
Prepare a cash budget for the first quarter.
| DCorp Cash Budget For the Quarter Ending March 31, 2022 | |
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| Beginning cash balance | 30,000 |
| ADD Receipts: | |
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| Total Receipts |
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| Available cash |
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| LESS Disbursements: | |
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| Total Disbursements |
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| Excess of Available Cash over disbursements | 11,000 |
| Financing: | |
| Add: Borrowings |
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| Less: Repayments |
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| Ending Cash Balance |
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Accounting Principles Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
9th Canadian Edition
978-1119786634, 1119786630
