8 Cash Budget Assume actual cash receipts and disbursements will follow the patt

Question

8 Cash Budget

Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and
Payables of 12/31/x1 will have a cash impact in 20x2.)

1. 18.00% of sales for the year are made in November and December. Since our customers have 60 day terms
those funds will be collected be collected in January and February.
2. 83.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.
3. All other manufacturing and operating costs are paid for when incurred.
4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.
5. Minimum Cash Balance needed for 20x2, $140,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20x2
Round dollars to two places, $##.##
Beginning Cash Balance $34,710.000
Cash Inflows:
Sales Collections:
Account Receivable (Sales last year not collected) $67,500.00
Sales made and collected in 20x2
Cash Available

Cash Outflows:
Purchases
Accounts Payable (Purchases last year)
Purchases made and paid for in 20x2
Other Manufacturing Costs
Direct Labor
Total Manufacturing Overhead
Selling and Administrative
Less: Depreciation
Total Cash Outflows

Budgeted Cash Balance before financing
Needed Minimum Balance

Amount to be borrowed (if any)

Budgeted Cash Balance

Sindhya K: Hey i would have helped but i m out right now. Send me a lesson request for tomorrow if its not urgent.

InstaEDU Messages <reply+8HC0DzvrM56szwSnHi0WO3IbXfnshKqpdbz0bQ74fZA=@mg.instaedu.com> wrote:

20 hours ago you sent [https://instaedu.com/tutors/publish/static/img/5adab12324.png]

“sure :)” See the whole conversation<https://instaedu.com/tutors/messages/RP4FJ/>
[https://instaedu.com/tutors/publish/static/img/6ccaff70fe.png]

[https://instaedu.com/tutors/publish/static/img/6ccaff70fe.png]

Antionette sent:

8 Cash Budget

Assume actual cash receipts and disbursements will follow the pattern below: (Note: Receivables and
Payables of 12/31/x1 will have a cash impact in 20x2.)

1. 18.00% of sales for the year are made in November and December. Since our customers have 60 day terms
those funds will be collected be collected in January and February.
2. 83.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February.
3. All other manufacturing and operating costs are paid for when incurred.
4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses.
5. Minimum Cash Balance needed for 20x2, $140,000 .
I See The Light
Projected Cash Budget
For the Year Ending December 31, 20x2
Round dollars to two places, $##.##
Beginning Cash Balance $34,710.000
Cash Inflows:
Sales Collections:
Account Receivable (Sales last year not collected) $67,500.00
Sales made and collected in 20x2
Cash Available

Cash Outflows:
Purchases
Accounts Payable (Purchases last year)
Purchases made and paid for in 20x2
Other Manufacturing Costs
Direct Labor
Total Manufacturing Overhead
Selling and Administrative
Less: Depreciation
Total Cash Outflows

Budgeted Cash Balance before financing
Needed Minimum Balance

Amount to be borrowed (if any)

Budgeted Cash Balance

Explanation / Answer

Answer:-

Projected Cash Budget For the year ending December 20x2 Beginning cash balance $       34,710.00 Cash inflows: Sales collections: Accounts receivable(Sales not collected last year) $       67,500.00 Sales made and collected in 20x2 $ 1,410,150.00 Cash Available $ 1,512,360.00 Cash Outflows: Purchases Accounts Payable (Purchases last year) $       54,000.00 Purchases made and paid for in 20x2 $     457,301.70 Other Manufacturing Costs $     355,176.00 Direct Labor $       72,240.00 Total Manufacturing Overhead $     938,717.70 Selling and Administrative $     259,700.00 Less: Depreciation $         2,172.00 Total Cash Outflows $ 1,196,245.70 Budgeted Cash Balance before financing $     316,114.30 Needed Minimum Balance $     140,000.00 Amount to be borrowed (if any) Budgeted Cash Balance $     316,114.30

Related Questions

Navigate

• Browse (All)
• Browse 8
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.