Question - Walter Company has the following information for the month of March:
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Cash Balance, March 1
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$17,370
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Collection from customers
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39,950
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Paid to suppliers
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23,000
|
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Manufacturing overhead
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6,800
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|
Direct labor
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8,600
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|
Selling and administrative expenses
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4,900
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Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,550 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 $7,700 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.