MB 8

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,$46,000 b. Budgeted cash receipts from September sales, $258,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $72,000; and September (budgeted), $104,000. 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, $30,000. e. Budgeted depreciation expense for September, $3,100. f. Budgeted cash payment for dividends in September, $53,000. g. Budgeted cash payment for income taxes in September, $10,600. h. Budgeted cash payment for loan interest in September, $1,100