Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Yasmin has $14,000 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget
Yasmin has $14,000 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data) Assure direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yasmin has cash payments for selling and administrative expenses including salaries of $80,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of S1,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yasmin need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February. (Complete all Input fields. Enter a o for any zero balances. Round all amounts entered into the cash budget to the nearest whole collar.) Yasmin Company Cash Budget Two Months Ended January 31 and February 28 January X Data Table Beginning cash balance Cash receipts Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes depreciation of $1,600 per month) January February $ 530,000 S 530,000 S 562,000 442,800 502,900 180,191 160,412 134,870 112,754 55,366 53,348 Cash available Cash payments: Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing Borrowing Print Done Principal repayments Total effects of financing
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started