GBC Ltd. prepares a monthly cash budget. Here is income statement data for the next two months, Dec 2021 and Jan 2022:

December, 2021 January, 2022

Sales $380,000 $400,000

Direct Materials Purchases 120,000 110,000

Direct Labour 85,000 105,000

Manufacturing Costs* 62,000 77,000

Selling and Admin Exp. 75,000 80,000

*Includes $5,000 Depreciation Expense in EACH month.

All sales are on credit. Collections of sales are estimated to be 60% in the month of sale, 30% in the month following the sale, and the leftover balance in the second month following the sale. Direct material purchases are paid as follows: 30% in the month of sale, and the balance in the month after the sale. All other costs requiring payment are paid in the month of sale.

Sales in October, 2021: $200,000; for November, 2021: $280,000.

Direct materials purchases in November, 2021: $90,000.

Other incoming cash: December 2021, interest receivable, $3,000; January, 2022, proceeds from sale of securities, $5,000.

Other outgoing cash: February 2022, payment of cash for land, $20,000.

Cash balance is expected to be $50,000 as of December 1, 2021. The company’s policy is to always start each month with at least $30,000 in cash.

REQUIRED: prepare a cash budget for GBC, for December 2021 and January 2022. Use the schedule below. 

GBC Cash Budget: Dec 2021 and Jan 2022

Dec 2021 Jan 2022

Opening balance $ 50,000 ________

Cash from Oct/21 sales ________ ________

Cash from Nov/21 sales ________ ________

Cash from Dec/21 sales ________ ________

Cash from Jan/22 Sales ________ ________

Materials purchases from Nov/21 ________ ________

Materials purchases from Dec/21 ________ ________

Materials purchases from Jan/22 ________ ________

Materials purchases from Feb/22 ________ ________

Direct Labour ________ ________

Manufacturing Costs ________ ________

Selling and admin costs ________ _______

Other Inflows ________ ________

Other outflows ________ ________

Financing (if needed) ________ ________

Closing Balance ________ ________