Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash ba

Question

Wehr Inc. is preparing its cash budget for April. The budgeted beginning cash balance is $13,000. Budgeted cash receipts total $153,000 and budgeted cash disbursements total $155,000. The desired ending cash balance is $50,000. The company can borrow up to $120,000 at any time from a local bank, with interest not due until the following month.

Prepare the company's cash budget for April. (Input all amounts as positive values.)

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows:

     
The company wants to maintain monthly ending inventories of Material A equal to 25% of the following month's production needs. On January 31, this target had not been attained since only 3,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget.

The total cost of Material A to be purchased in February is:

$37,200

$19,000

$47,400

$45,000

Prepare the company's cash budget for April. (Input all amounts as positive values.)

Explanation / Answer

As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Statement showing cash budget Particulars Amount Opening Cash Balance                13,000.00 Cash Receipts             153,000.00 Total Cash Available             166,000.00 Less Cash Disbursements             155,000.00    Excess (deficiency) of cash available over disbursements                11,000.00 Borrowing(50,000-11,000)                39,000.00 Cash Balance Ending                50,000.00

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