Problem - Talbot Company had a cash balance of $25,000 on their December 31, 2010 balance sheet. The company wants to maintain a balance of at least $25,000 cash at the end of each quarter. Other relevant cash receipts and disbursements budgeted for the year include:
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Collections from customers
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$296,000
|
|
Payments for direct materials
|
60,000
|
|
Direct labor
|
80,000
|
|
Manufacturing overhead
|
90,006
|
|
Sale of equipment
|
4,000
|
|
Selling & administrative expenses
|
75,000
|
|
Purchase of marketable securities
|
3,000
|
Instructions - Prepare a cash budget for the first quarter.