Walter Company has the following information for the month of March: $ 17,670 40

Question

Walter Company has the following information for the month of March: $ 17,670 40,950 23,200 7,000 8,700 5,100 Cash balance, March 1 Collections from customers Paid to suppliers Direct labor Selling and administrative expenses Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,650 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 $7,900 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000. Required Prepare Walter's cash budget for the month of March. Beginning Cash Balance Budgeted Cash Receipts Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed Ending cash balance

Explanation / Answer

Walter Company Schedule of Expected Cash Budget Beginning Cash Balance $ 17,670.00 Add: Collection from Customers $ 40,950.00 Total Cash available=(A) $ 58,620.00 Less: Cash disbursement Paid to Suppliers $ 23,200.00 Manufacturing Overhead $    7,000.00 Direct Labor $    8,700.00 Selling & Administerative Expenses $    5,100.00 Purchase of Property $    7,900.00 Total Cash Disbursement=(B) $ 51,900.00 Excess or Deficiency of Cash=(A)-(B) $    6,720.00 Financing Borrowings $    4,000.00 Total Financing $    4,000.00 Ending Cash Balance $ 10,720.00

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