Use the following information:
a. Beginning cash balance on March 1, $72,000.
b. Cash receipts from sales, $300,000.
c. Budgeted cash disbursements for purchases, $140,000.
d. Budgeted cash disbursements for salaries, $80,000.
e. Other budgeted cash expenses, $45,000.
f. Cash repayment of bank loan, $20,000.
Prepare a cash budget for the month ended on March 31 for Gado Merchandising Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.
Rad Co. provides the following sales forecast and production budget for the next four months:
| April |
May |
June |
July |
| Sales (units) |
650
|
730 |
680 |
750 |
| Budgeted production (units) |
590 |
720 |
690 |
690 |
The company plans for finished goods inventory of 270 units at the end of June. In addition, each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 20% of next month's production needs.
Beginning raw materials inventory for April was 590 pounds. Each finished unit requires 0.30 hours of direct labor at the rate of $14 per hour.
The company budgets variable overhead at the rate of $18 per direct labor hour and budgets fixed overhead of $9,500 per month.
Use the following information:
a. Beginning cash balance on March 1, $72,000.
b. Cash receipts from sales, $300,000.
c. Budgeted cash disbursements for purchases, $140,000.
d. Budgeted cash disbursements for salaries, $80,000.
e. Other budgeted cash expenses, $45,000.
f. Cash repayment of bank loan, $20,000.
Prepare a cash budget for the month ended on March 31 for Gado Merchandising Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.