Question:

Question: 1. Payment Inc. is preparing its cash budget for February. The budgeted beginning cash balance is $47,000. Budgeted cash receipts total $165,000 and budgeted cash disbursements total $168,000. The desired ending cash balance is $65,000. The company can borrow up to $100,000 at any time from a local bank with interest not due until the following month.

Required: Prepare the company's cash budget for February in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

Required: Prepare the company's cash budget for February in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

Question 2.

Nic Saybin Enterprises' accounting department collects all pertinent monthly operating data. Correct Answer: Correct Answer: Selected data are presented below for the current month. From the data provided, please provide Saybin Enterprises' management with a flexible budget analysis to see how costs were controlled.

Actual Costs Incurred

Static Budget

Activity level (in units)

755,000

746,500

Variable costs:

Indirect materials

$328,997

$325,640

Utilities

$174,332

$171,890

Fixed costs:

General and administrative

$237,985

$244,908

Rent