Question
Walter Company has the following information for the month of March: Cash balance, March 1 $ 19,320 Collections from customers 46,500 Paid to suppliers 24,300
Walter Company has the following information for the month of March:
Cash balance, March 1 | $ | 19,320 |
Collections from customers | 46,500 | |
Paid to suppliers | 24,300 | |
Manufacturing overhead | 8,100 | |
Direct labor | 9,250 | |
Selling and administrative expenses | 6,200 | |
Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $2,200 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $9,000 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $20,000.
Required:
Prepare Walters cash budget for the month of March.
Beginning Cash Balance
Budgeted Cash Receipts
Budgeted Cash Payments
Preliminary Cash Balance
Cash Borrowed Ending Cash Balance
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