Reference - Cash Receipts from Customers Graham Company Cash Budget January, February, and March January February January February March Total Total sales $ 12,600 $ 12,200|| $ 13.400lls 38,200 March Total January February March Total Beginning cash balance Cash Receipts from Customers: Cash receipts Accounts Receivable balance, January 1 Cash available January-Cash sales $ 10.080 Cash payments 1,260 Purchases of direct materials January-Credit sales, collection of January sales in January January-Credit sales, collection of January sales in February $ 1,260 Direct labor February-Cash sales 9,760 Manufacturing overhead 1,220 Selling and administrative expenses February-Credit sales, collection of February sales in February February-Credit sales, collection of February sales in March March-Cash sales $ 1.220 Interest expense 10.720 Total cash payments Ending cash balance before financing March-Credit sales, collection of March sales in March 1.340 $ 11,340||$ 12.240||$ 13.280 $ 36,860 Total cash receipts from customers Miri - l Ending cash balance before financing Minimum cash balance desired vandalye edil Sales, bet February-Cash sales February-Credit sales, collection of February sales in February FebruaryCredit sales, collection of February sales in March 9,760 1,220 $ 1.220 Projected cash excess (deficiency) Financing: Borrowing March-Cash sales 10.720 March-Credit sales, collection of March sales in March 1,340 Principal repayments $ 11,340 12,240$ 13.280||$ 36,860 Total cash receipts from customers Total effects of financing Ending cash balance Accounts Receivable balance, March 31: March-Credit sales, collection of March sales in April $ 1.340 Reference January February March Total S 0 Cash Payments Direct Materials: Accounts Payable balance, January 1 JanuaryDirect material purchases paid in February FebruaryDirect material purchases paid in March Total payments for direct materials $ 3,700 S 4.100 0 3,700 4,100 $ 7,800 Direct Labor: Total payments for direct labor 3,200 3,200 4,400 10,800 950 950 1.900 Manufacturing Overhead: Utilities for plant Property taxes on plant Total payments for manufacturing overhead 1,200 1.200 1,200 950 950 3,100 Reference 950 950 1,900 Manufacturing Overhead: Utilities for plant Property taxes on plant Total payments for manufacturing overhead 1,200 1.200 1,200 950 950 3,100 350 350 700 Selling and Administrative Expenses: Utilities for office Property taxes on office Office salaries Total payments for Selling and Admin. expenses 1,880 1.680 5,500 5,500 5,500 16,500 7,180 5,850 5,850 18,880 S Total cash payments 11,580$ 13,7005 15,300 $ 40,580 Acccount balances, March 31: Prepaid Property Taxes $ 2,160 $ 4.400 Accounts Payable Utilities Payable $ 1,300 More info Graham's beginning cash balance is $4,500 and Graham desires to maintain a minimum ending cash balance of $4,500. Graham 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 15% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month
