Question
E8-16 Preparing Cash Budget [LO 8-4] Walter Company has the following information for the month of March: Cash balance, March 1 $ 17,220 Collections from
E8-16 Preparing Cash Budget [LO 8-4]
Walter Company has the following information for the month of March:
Cash balance, March 1 | $ | 17,220 |
Collections from customers | 39,450 | |
Paid to suppliers | 22,900 | |
Manufacturing overhead | 6,700 | |
Direct labor | 8,550 | |
Selling and administrative expenses | 4,800 | |
Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,500 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7,600 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $11,000. Required: Prepare Walters cash budget for the month of March.
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