Learning Objective 4 E22-27 Preparing a financial budget-schedule of cash payments Marcel Company has the following projected costs for manufacring and Belling and administrative expenses: Mar. total cash pmts. $11,500 January February March $4,800 3,600 Direct materials purchases 3,100 Direct labor costs Depreciation on plant Utilities for plant Property taxes on plant Depreciation on office Utilities for office $3,500 3,500 550 3,300 $50 650200 650 200 200 550 250 170 3,500 250 170 3,500 Property taxes on office Office salaries 170 3,500 All costs are paid in month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a zero balance on January 1. Prepare a schedule of cash payments for Marcel for January, February, and March. Determine the balances in Prepaid Property Taxes, Accounts Payable, and Urilities Payable as of March 31. Master Budgets 123 Note: Exercises E22-26 and E22-27 must be completed before attempting Exercise E22-28 E22- 28 Preparing the financial budget-cash budget Use the original schedule of cash receipts completed in Exercise E22-26, Requirement 1, and the schedule of cash payments completed in Exercise E22-27 to Feb. ending cash bal. $5,780 complete a cash budget for Marcel Company for January, February, and March. Additional information: Marcel's beginning cash balance is $5,000, and Marcel desires to maintain a minimum ending cash balance of $5,000. Marcel borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 8% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month. Learning Objective4