QS 22-24 Manufacturing: Cash budget LO P2

Use the following information:

1. Beginning cash balance on March 1, $80,000.
2. Cash receipts from sales, $305,000.
3. Budgeted cash payments for direct materials,$138,000.
4. Budgeted cash payments for direct labor $76,000.
5. Other budgeted cash expenses, $42,000.
6. Cash repayment of bank loan, $12,000.

Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.

GADO COMPANY
Cash Budget
For Month Ended March 31
Total cash available
Cash payments for:
Total cash payments

Exercise 22-18 Budgeted cash receipts LO P2

Jasper Company has sales on account and for cash. Specifically, 58% of its sales are on account and 42% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $521,000 for April, $531,000 for May, and $556,000 for June. The beginning balance of Accounts Receivable is $291,700 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

		April	May	June
Cash sales	42%
Sales on account	58%
Total sales
JASPER COMPANY
Schedule of Cash Receipts
For April, May, and June
		April	May	June
Cash receipts from:
Cash sales
Collection of accounts receivable
Total budgeted cash receipts

Exercise 22-19 Budgeted cash payments LO P2

Zisk Co. purchases raw materials on account. Budgeted purchase amounts are: April, $90,000; May, $120,000; and June, $130,000. Payments are made as follows: 75% in the month of purchase and 25% in the month after purchase. The March 31 balance of accounts payable is $32,000. Prepare a schedule of budgeted cash payments for April, May, and June.

		April	May	June
Current month purchases	75%
Ending accounts payable	25%
Total purchases
Zisk Co.
Schedule of Cash Payments
For April, May, and June
		April	May	June
Cash payments for:
Current month purchases
Prior month purchases
Budgeted cash payments for materials