Yogi has $15,000 in cash on hand on January 1 and has collected the following bu
ID: 2567007 • Letter: Y
Question
Yogi has $15,000 in cash on hand on January 1 and has collected the following budget data EE (Click on the icon to view the budget data ) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yogi has cash payments for selling and administrative expenses including salaries of S65 000 per month plus commissions that are 2% of sales, all paid in he month of sale The company requires a minim m cash balance of $12.000 Prepare a cash budget for January and February Round to the nearest dollar Will Yogineed to borrow cash by the end of February Beginning cash balance Cash receipts Cash available Cash payments Data Table January February Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes depreciation of $1,100 per month) 534,000 S 568,000 443,100 502,600 160,366 112,626 180,191 35.130 Total cash payments 55,492 53,348 Ending cash balance before fiCnancingExplanation / Answer
CASH BUDGET FOR JANUARY & February Jan Feb Sales 5,34,000 5,68,000 Cash Received from Customer 4,43,100 5,02,600 Total Collections (A) 4,43,100 5,02,600 Payments Direct Material 1,89,191 1,60,366 Direct labor 1,35,130 1,12,626 Mfg Ohs Without Depn. 54,392 52,248 Selling & Admn. Expenses 75,680 76,360 Total Payments (B) 4,54,393 4,01,600 Surplus/(Deficit) (C=A-B) (11,293) 1,01,000 Opening Cash Balance (D) 15,000 12,000 Minimum Cash Balance required ( E ) 12,000 12,000 Bank Loan/Repayment(F=C+D-E) 8,293 (8,293) Closing Balance (D+F-C) 12,000 1,04,707
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