Question
Nadia Company expects to have a cash balance of $45,300 on January 1, 2020. Nadia has budgeted the following for the first two months of
Nadia Company expects to have a cash balance of $45,300 on January 1, 2020. Nadia has budgeted the following for the first two months of the year 2020:
| 1. | Collections from customers: January $90,900; February $109,600. | ||
| 2. | Payments to suppliers: January $40,000; February $49,800. | ||
| 3. | Direct labour: January $30,300; February $35,200. Wages are paid in the month they are incurred. | ||
| 4. | Manufacturing overhead: January $25,200; February $30,300. Overhead costs are paid as incurred. | ||
| 5. | Selling and administrative expenses: January $15,800; February $22,100. These costs do not include depreciation and they are paid as incurred. | ||
| 6. | Sales of investments in January are expected to realize $10,100 in cash. Nadia Company wants to keep a minimum monthly cash balance of $20,000. |
Prepare a cash budget for January and February.
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Clinical Audit For Doctors And Healthcare Professionals
Authors: Bhoresh Dhamija, Chen Low, Geri Keane
2nd Edition
1445384043, 978-1445384047
