Use the following information to prepare the September cash budget for PTO Manuf

Question

Use the following information to prepare the September cash budget for PTO Manufacturing Co. The following information relates to expected cash receipts and cash disbursements for the month ended September 30. Beginning cash balance, September 1, dollar 43,000. Budgeted cash receipts from sales in September, dollar 255,000. Raw materials are purchased on account Purchase a mounts are: August (actual), dollar 74,000, and September (budgeted), dollar 107,00. Payments for direct materials are made as for direct materials are made as follows: 70 percentage in the month of purchase and 30 percentage in the month following purchase. Budgeted cash disbursements for direct labor in September, dollar 36,000. Budgeted depreciation expense for September, dollar 3,600. Other cash expenses budgeted for September, dollar 56,00.0. Accrued income taxes payable in September, dollar 10,400. Bank loan interest payable in September, dollar 1,700.

Explanation / Answer

Cash budget for September

Beginning cash balance 43000 Cash receipt from sales 255000 Total cash available 298000 Cash disbursement: Direct material[(30%×74000)+(70%×107000)] 97100 Direct labour (36000) Other expenses (56000) Accrued taxes (10400) Interest on bank loan (1700) Total cash disbursement (201200) Ending cash balance 96800

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

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