Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need to know this is correct ( please do the table ) Use the following information to prepare the September cash budget for PTO

i need to know this is correct (please do the table)
image text in transcribed

Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance, September 1, $40,000. b. Budgeted cash receipts from September sales, $255,000 c. Direct materials are purchased on credit. Purchase amounts are August (actual), $80,000; and September (budgeted), $110,000 Payments for direct materials follow: 65% in the month of purchase and 35% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $40,000 e. Budgeted depreciation expense for September, $4,000 f. Budgeted cash payment for dividends in September, $20,000 g. Budgeted cash payment for income taxes in September, $10,000 h. Budgeted cash payment for loan interest in September, $1,000. Cash Budget September Beginning cash balance Add: Cash receipts from sales Total cash available ess: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan Total cash payments Ending cash balance 40,000 255,000 295,000 99,500 40,000 60,000 10,000 1 ,ooo 210,500 84,500

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_2

Step: 3

blur-text-image_3

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

International Financial Management

Authors: Jeff Madura, Roland Fox

5th Edition

1473770505, 978-1473770508

More Books

Students also viewed these Finance questions