H) Payment of direct material purchases:

All direct material purchases are on account, and payments are:

40% in the month of purchase

60% in the month following the purchase

All other operating expenses are paid in the month incurred (budgeted)

I) Minimum cash balance required is: $40,000

Interest is calculated at an annual rate of: 12%

Required:

Note:

• Please show notes to support some calculations
• All shaded cells onall schedules are there 'just in case' you require them to calculate any necessary numbers - you may not need to fill in each shaded box on each schedule.

1. Complete the CASH BUDGET for JANUARY only (11 marks)

	January
Beginning cash balance
Add: Cash collections
Total cash available
Cash Disbursements:
Payment of purchases
Direct labour
Manufacturing overhead
Selling & Admin
Total disbursements
Excess/Deficient Cash Balance
Financing:
Cash borrowed
Cash repaid
Interest
Total financing
Ending cash balance